(Bloomberg) -- Goldman Sachs raised its price target for China Coal Energy Co. (1898.HK) by 39 percent to HKD16, citing a more optimistic outlook for coal and coal chemical product prices. The bank maintained its Buy rating on the stock.
"The results for Chinese commodities last year were broadly strong, with most cement stocks beating earnings expectations and coal stocks' per-ton profit largely in line," the Goldman Sachs research report said.
The bank increased its earnings forecasts for the Chinese coal stocks it covers by 3-15 percent. In contrast, Goldman Sachs lowered its target price for Conch Cement Co. (0914.HK) to HKD28 from HKD31 and for CNBM (3323.HK) to HKD6 from HKD6.5, while maintaining Buy ratings on both.
The report also upgraded Maanshan Iron & Steel Co. (0323.HK) to Neutral from Sell, lifting its target price to HKD2.5 from HKD1.9, noting that the company's valuation is approaching more reasonable levels. Steel companies' results remained sluggish but showed year-over-year improvement, the report said.
This article is for informational purposes only and does not constitute investment advice.
