Morgan Stanley: Raises CRRC Corporation (01766) target price to HK$5.6, maintains "Underweight" rating

Morgan Stanley issued a research report stating that based on CRRC Corporation's (01766) first nine months results, it has raised the target price from HK$5 to HK$5.6, maintaining an "Underweight" rating. The bank slightly lowered the company's 2026 revenue forecast by 1%, but due to a more stable growth outlook, raised its 2027 revenue forecast by 1%; for net profit forecasts, it lowered 2026 by 3% and kept 2027 roughly unchanged. The bank rolled its valuation forward to 2027 and kept the target P/E ratio unchanged at 8x, appreciating the company's defensiveness, but given the flat growth prospects, the valuation appears insufficiently attractive.