MMG Ltd price target lowered to HK$2.50 from HK$2.80 at Jefferies

Jefferies lowered the firm’s price target on MMG Ltd (MMLTF) to HK$2.50 from HK$2.80 and keeps a Hold rating on the shares. The firm is more cautious on the near-term outlook for the metals and mining sector due to cyclical factors, and believes the risk to consensus estimates is to the downside. However, it is too late to make downgrades to ratings, says Jefferies, which has a bias to buy “preferred” miners and steel producers following the recent significant weakness. The firm expects a stronger demand environment to materialize in 2026 and 2027, and says this should lead to “substantially higher” prices for some key commodities and for share prices of most of the companies.