News summary
Citi raised BOC Hong Kong's (02388) net interest income forecast for the next three years by 1% to 2%, while also raised its non-interest income forecast, with its earnings per share rising by 1% to 3%. Target price increased from HK$25 to 28realmoneysicbo.2 Hong Kong dollars, reflecting a reduction in macro uncertainty.
Newsletter text
[BOC Hong Kong's net interest income forecast is raised, and Citigroup adjusts its target price to HK$28.2] Citibank in a new releaserealmoneysicboThe research report proposed that BOC Hong Kong (02388) will raise its revenue forecast by 1% to 2%, given that its net interest income outlook from 2024 to 2026 is more optimistic than expected. At the same time, Citi also raised the bank's non-interest income forecast by 1% to 2% for the same period, reflecting improved market sentiment and providing strong support for the recovery of fee income. With these adjustments, Citi further raised BOC Hong Kong's earnings per share forecast from 2024 to 2026, with an increase of between 1% and 3%. In addition, Citi's forecast for the cost of equity has also been slightly lowered as macro uncertainty has subsided. Based on these positive economic expectations, Citibank raised its target price for BOC Hong Kong from HK$25 to HK$28.2.