HALISTER1: Nomura Raises BAIC Motor Price Target by 93% and Upgrades to Buy

Nomura Raises BAIC Motor Price Target by 93% and Upgrades to Buy

(Bloomberg) -- Nomura raises BAIC Motor Corp. to buy from reduce and lifts price target 93% on better-than-expected profit margins at Beijing-Benz, while noting the proposed A-share issue should alleviate concerns of domestic brand losses draining cash flow.
  • 2018-2019 net profit ests. raised by 9%-5% to reflect higher Benz profits, though 2017 est. cut by 13% on larger domestic brand losses, analyst Benjamin Lo writes in note
  • Sees a normalization of BAIC’s earnings from trough this year, underpinning rating upgrade
  • PT of HK$11.60 is second-highest among analysts tracked by Bloomberg
  • BAIC rises as much as 2.5% Monday to HK$9.29 before paring gains to 0.1%
To contact Bloomberg News staff for this story: Ryan Lovdahl in Shanghai at rlovdahl@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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1958 HK (BAIC Motor Corp Ltd)

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Benjamin Lo (Nomura Holdings Inc)

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