Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>UBS Downgrades HKELECTRIC-SS to Neutral; Rate Cut Cycle Reduces Defensive Stock Appeal
Recommend 2 Positive 6 Negative 4 |
||||
|
||||
|
UBS has released a research report downgrading the rating of HKELECTRIC-SS (02638.HK) from Buy to Neutral and maintaining its target price at HKD6. According to the report, HKELECTRIC-SS' stock price has already risen by 20% YTD, outpacing Hong Kong utility stocks by around 16 ppts. Its current price already reflects its defensive nature. As the US enters a rate cut cycle, the yield on the US 10-year Treasury bond is expected to decrease from the current 4.1% to 3.8% by end-2025 and to 3.4% by end-2026, which could lead to a rise in risk appetite. With funds potentially flowing towards growth stocks, the appeal of HKELECTRIC-SS and other defensive stocks will be dampened. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
