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Bank of East Asia downgraded to Hold from Buy at Jefferies

Jefferies analyst Sam Wong downgraded Bank of East Asia to Hold from Buy with a price target of HK$10, down from HK$11.50. Consensus provisions should have built in some buffer for Hong Kong commercial real estate, or CRE, but the firm thinks peaked net interest income, or NII, and looming macro uncertainties in Hong Kong and China will “prevent the stock from re-rating near term,” the analyst tells investors.

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