MTR (MTRJF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Jeff Yau from DBS maintained a Buy rating on the stock and has a HK$31.40 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jeff Yau has given his Buy rating due to a combination of factors that highlight MTR’s promising financial prospects. The company’s underlying profit in the first half of 2024 showed a significant increase, surpassing expectations primarily due to better-than-anticipated development earnings. Additionally, revenue from Hong Kong transportation operations saw a substantial rise driven by increased patronage, and pre-tax development profit more than doubled, indicating robust financial health.
Furthermore, MTR’s operations are well-positioned to benefit from Hong Kong’s economic growth, given its extensive rail network and connections to residential and commercial sectors. The company is also making a strong post-pandemic recovery in its core businesses, such as transportation and mall operations, which is expected to continue driving earnings growth. The anticipated shift in interest rates is likely to enhance housing market sentiment, further supporting MTR’s financial outlook. With the stock trading at a notable discount to its appraised value, Jeff Yau views MTR as attractively valued, reinforcing his Buy recommendation.
According to TipRanks, Yau is an analyst with an average return of -8.4% and a 27.94% success rate. Yau covers the Real Estate sector, focusing on stocks such as Hang Lung Properties, Sino Land Co, and CK Asset Holdings.