Goldman Sachs Group issued a report that maintained Citic 1616 Group's neutral rating but raised its target price from HK $1.08 to HK $1.28, corresponding to a price-to-earnings ratio of 7 times expected 2009 earnings and a 15 per cent premium to the market price.

Goldman Sachs pointed out that Citic 1616 raised its net profit forecast by 2 per cent this year and next because of stable profit margins. However, the bank believes that after the recent sharp rally, it is not recommended to catch up with the stock at this point, especially given the current macroeconomic risks, the macro-economy is expected to face greater downside risks in 2009.

Citic 1616 fell 5.93 per cent to HK $1.11 on the day.