Broker's take: CGS-CIMB downgrades Jardine Matheson to 'hold'
CGS-CIMB has downgraded Jardine Matheson Holdings (JMH) to "hold" from "add", with a lowered target price of US$52.53 from US$61.66 previously.
The move reflects downward revisions for JMH's operating subsidiaries given uncertainty over the novel coronavirus outbreak. These subsidiaries include PT Astra International, Dairy Farm International Holdings and Hongkong Land Holdings.
JMH also expects its short-term outlook to be challenging, with its 2020 financial year forecast depending on the duration, geographic extent and impact of the Covid-19 outbreak as well as the measures taken to contain it.
However, the group is optimistic about its prospects for a fast recovery once the situation has stabilised.
The conglomerate's FY2019 performance was in line with CGS-CIMB's expectations and was 97 per cent of the research house's forecast, analyst William Tng said in a report dated Monday.
As at 10.33am on Tuesday, JMH shares were trading at US$49.24, down US$0.88 or 1.8 per cent.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
On Friday, CGS-CIMB reiterated its "buy" call on Hongkong Land with a lowered target price of US$6.05 from US$6.90. It added that the property developer's Hong Kong office portfolio should remain resilient, in view of the limited supply of premium central office space.
Hongkong Land shares were trading at US$4.66 as at 10.34am on Tuesday, up US$0.11 or 2.4 per cent.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Intel slides after tepid forecast spurs fears about comeback
Microsoft beats estimates as AI drives revenue
Crypto firm sues SEC to fend off oversight of Ethereum
Snap beats first-quarter expectations, shares jump 25%
Google parent announces first-ever dividend; beats on sales, profit; shares soar
Baltimore’s trapped ships start leaving as new channel opens