Citigroup raises HSI 2014 target at 25,000 pts
Citigroup predicted that the Hang Seng Index's 2014 P/E is 9.7x at present, lower than the historical average of 12.7x. Based on the estimate of 10.4x 2014 P/E, the research house raised the HSI target from 24,000 pts to 25,000 pts, with around 8% upward potential.
Besides, HUTCHISON (00013.HK) and NEW WORLD DEV (00017.HK) were added to the top-picks list with target at $111 and $16.5 respectively.
As for Macau gaming stocks, Citigroup kept SANDS CHINA LTD (01928.HK) as top choices with target at $57.5.
For real estate developers, CHEUNG KONG (00001.HK) was included in the top-pick list as well with target set at $151.2; New World Development's target was at $16.5; outlook on WHARF HOLDINGS (00004.HK) was unchanged with target at $80.
BOC HONG KONG (02388.HK), price target at $80, was considered top choice among local banks.
In addition, CITIC PACIFIC (00267.HK) was kept in the Sell list, with target at $7; HK & CHINA GAS (00003.HK) was added to the list with target at $16. CHINA MER HOLD (00144.HK) and Hutchison Port Holdings Trust were erased from the list.