ESR Group Limited (1821 – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ben Wong from DBS downgraded the rating on the stock to a Hold and gave it a HK$13.88 price target.
Ben Wong’s rating is based on several factors impacting ESR Group Limited. The company’s privatisation progress is expected to influence its share price in the near term, but operational challenges persist, which could affect earnings. The appetite of capital partners is slow to recover due to macroeconomic uncertainties, and while the asset outlook may have improved, short-term operational hurdles remain.
Furthermore, the company’s earnings forecasts for FY25-26 have been significantly reduced by 56-70% to account for adjusted assumptions regarding asset under management growth and margins. The slow pace of asset divestment and the uncertain interest rate environment, particularly in China, weigh on the company’s financials. Given these factors and the lack of immediate catalysts, Ben Wong has downgraded the stock to a Hold rating with a target price of HKD13.88.
According to TipRanks, Wong is a 4-star analyst with an average return of 15.6% and a 63.16% success rate.
In another report released on March 24, J.P. Morgan also downgraded the stock to a Hold with a HK$13.00 price target.