Morgan Stanley has raised the bearish, neutral, and bullish market forecasts of BOC Hong Kong (02388) by 2.8%, 1.6%, and 0.5% respectively.
According to the information from the Intelligence Finance APP, Morgan Stanley released a research report stating that it maintains the 'in sync with the market' rating for BOC Hong Kong (02388), due to the continuous strong growth in system deposits, which has raised expectations for total income-producing assets (AIEA), offsetting the lower net interest margin (NIM) forecast, leading to an upward revision of the forecasted net interest income for 2024 and 2026, increasing the target price from HK$23.8 to HK$24.2, up 1.7%.
After adjusting the profit forecast, Morgan Stanley raised its bearish, neutral, and bullish market forecasts by 2.8%, 1.6%, and 0.5% respectively. The report indicates an upward revision in BOC Hong Kong's non-net interest income forecast, reflecting increased income from forex swaps. Due to continued strong cost control, cost forecasts for all three years have been lowered. The credit loss (ECL) forecast has been reduced due to a decrease in loan growth expectations.
