Analyst Paul Yong of DBS maintained a Buy rating on Hutchison Port Holdings (HCTPF – Research Report), retaining the price target of $0.20.
Paul Yong has given his Buy rating due to a combination of factors surrounding Hutchison Port Holdings Trust (HPH Trust). The potential for a sale of HPH Trust, driven by geopolitical factors, could attract significant interest from Chinese state-owned enterprises, which may offer a premium valuation. This speculation has already led to a notable increase in the share price, indicating strong market confidence in the asset’s value.
Furthermore, HPH Trust is a leading port operator in Hong Kong and Shenzhen, with plans to expand capacity by 2025, supporting long-term growth. Despite challenges in the first half of 2023, including lower throughput and higher interest rates, the outlook for the second half is more optimistic. The Trust’s strong cash flow and improving balance sheet suggest room for increased dividends, making the stock attractive with high dividend yields projected for the coming years.
According to TipRanks, Yong is a 4-star analyst with an average return of 10.0% and a 58.62% success rate.
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