Damo predicts that AIA's (01299) stock price will rise 60 to 70% within 30 days.
The Zhitong Finance App learned that Morgan Stanley released a research report saying that the stock price of AIA (01299) is expected to rise 60% to 70% within 30 days. The target price is HK$94, and the rating is “increased.” Recently, the company's stock price has been excessively revised, and its fundamentals are still stable. The current valuation is equivalent to predicting that the ratio of this year's stock price to embedded value is about 1 times, which is attractive. Its core financial data has gradually resumed growth since this year. The balance sheet remains strong, contains reliable values, and continues to support book value.
According to the report, some investors are concerned that the offshore insurance business for mainland customers in Hong Kong will be further overhauled, but the impact on this sector is limited. Since Hong Kong regulators aim to standardize the market order, there is no risk of further tightening of capital controls. AIA will announce first-quarter results before the market opens on April 29. The bank expects the value of its new business to increase by about 20%, and profit margins are expected to expand year-on-year.