Damo lowered Hang Seng Bank (00011)'s profit forecast for 2024 by 5.6%, and the forecast for the next two years was raised by 5.2% and 12%, respectively.
The Zhitong Finance App learned that Damo released a research report stating that it maintains Hang Seng Bank (00011)'s “in sync with the market” rating, and considering raising Hang Seng's profit forecast for the next two years, the target price was raised from HK$89.7 to HK$93.3.
The bank said it will lower the company's profit forecast for 2024 by 5.6% and raise the forecast for the next two years by 5.2% and 12%, respectively, to reflect the latest expectations for US interest rate cuts and the bank's relatively moderate share repurchase scale. The net interest income forecast for 2024 was lowered due to the expected lower growth of Hang Seng loans; at the same time, the bank's net interest income forecast for the next two years was raised due to the revision of the US medium-term interest rate forecast from 3.2% to 3.8%.