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Goldman Sachs: The value of the Hong Kong Stock Exchange is still underestimated, raising the target price to HKD 455.
On June 2, Jin10 reported that Goldman Sachs published a research report stating that although the Hong Kong Exchange (00388.HK) stock price has risen about 35% this year due to adjusted earnings per share and valuation expansion, its value remains undervalued relative to the recent stronger market activity levels. The bank estimates that in the medium term, if more A-share companies list in Hong Kong, the average daily trading volume for the fiscal year 2025 will have about a 15% potential rise, considering a 50% chance of occurrence, and raises the average daily trading forecast for 2026 and 2027 by 7% and 6%, respectively, expected to reach HKD 240 billion and HKD 258 billion. The bank expects that with more new stocks listed, the market capitalization of the Hong Kong Exchange will continue to expand. The bank raised its earnings per share forecast for the Hong Kong Exchange for the fiscal years 2025 to 2027 by 2%, 9%, and 10%, reaffirming a buy rating, and raising the target price from HKD 398 to HKD 455.