Goldman Sachs upgrades half-year target price of HSBC Holdings to HK$110

In the morning briefing, Goldman Sachs elevated the investment rating of HSBC Holdings (0005) from ˇ§in line with the broad marketˇ¨ to ˇ§leading the marketˇ¨, while upgraded the half-year target price to HK$110, 2.7 times of the book value. The target price for 12-18 months was also lifted to HK$120, 2.8 times of the book value.

Nevertheless, the fund house lowered the per share earnings forecast for Year 2001 and 2002 by 2.6% and 6.2% to HK$5.62 and HK$6.19.

The rating elevation in HSBC Holdings (0005), Goldman Sachs explained, can be attributed to the improved global economical situations, HSBCˇ¦s encouraging business outlook, sharpened competitive edge and increased operating efficiency as well as the fading market anticipation.

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