JP Morgan: Gives CICC (03908) a "buy" rating, expects Chinese securities firms to benefit from higher trading volumes.
Citi renews coverage of Chinese brokerage stocks and gives a positive outlook, believing that they have strong business momentum, favorable regulatory environment, and low valuations, bringing attractive buying opportunities.
JPMorgan Chase released a research report giving CICC (03908) a "buy" rating, with a target price raised from 21.2 Hong Kong dollars to 24 Hong Kong dollars.
The bank reassessed Chinese brokerage stocks and expressed a positive view, believing that strong business momentum, favorable regulatory environment, and reasonable valuation provide attractive buying opportunities. The bank pointed out that the valuations of A-share and H-share brokerage firms are currently lower than long-term averages, and the market is overly conservative in its forecasts for this year's average daily trading volume (ADT). The bank expects that the first quarter results to be announced in April will be a key catalyst for the sector's re-rating.
The bank's top pick in the industry is CICC (03908), believing that CICC is a major beneficiary of the recovery in IPO and institutional business. The bank also expects East Money Information (300059.SZ), CMSC (06099), and Galaxy Securities (06881) to have upside potential in the first quarter of 2026.
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