Damo: Raise the target price of CRRC (01766) to HK$5.6 to maintain a “reduced holdings” rating

The Zhitong Finance App learned that Morgan Stanley released a research report stating that based on CRRC (01766)'s performance in the first nine months, the target price was raised from HK$5 to HK$5.6, maintaining a “reduced holdings” rating.

The bank slightly lowered the company's 2026 revenue forecast by 1%, but due to a more stable growth outlook, it raised the 2027 revenue forecast by 1%; in terms of net profit forecasting, it was lowered by 3% in 2026 and remained largely unchanged in 2027.

The bank rolled the valuation forward to 2027 and kept the target price-earnings ratio unchanged at 8 times. It appreciated the company's defensive nature, but considering the lackluster growth prospects, the valuation did not seem attractive enough.