UBS: Gives MTR Corporation (00066.HK) a "Sell" rating with a target price of HK$25; massive capital expenditure on the Northern Link raises financing concerns.

Zhitong Finance APP has learned that UBS issued a research report stating that it has given MTR Corporation (00066.HK) a "Sell" rating with a target price of HK$25, based on an estimated net asset value (NAV) per share of HK$35.8 and applying a 30% discount. The bank holds a cautious view on MTR Corporation's outlook, believing that the massive capital expenditure of the Northern Link may prompt investors to focus on financing arrangements, while the company's leverage ratio faces upside risk during the interest rate hike cycle, and cash recovery from land tenders may also be further delayed.