Morgan Stanley: Downgrades FIT Hon Teng (06088.HK) rating to "In-Line" and cuts target price by 55% to HK$3.6

Zhitong Finance APP has learned that Morgan Stanley issued a research report stating that it has downgraded the rating on FIT Hon Teng (06088.HK) from "Overweight" to "Equal-weight," sharply cut the target price by 55% from HK$8 to HK$3.6, and lowered its earnings per share forecasts for 2026 to 2028 by 23%, 47%, and 49%, respectively. The bank noted that the company's third-quarter operating profit once again fell short of expectations, and structural margin pressure and delays in monetizing artificial intelligence (AI) projects mean that growth in AI demand has not yet translated into sustainable earnings growth sufficient to offset weakness in other businesses.