
UBS raises FOSUN INTL target price to 5.4 yuan, maintains "Neutral" rating
UBS released a report, raising the target price for FOSUN INTL (00656.HK) from HKD 4.7 to HKD 5.4, based on the company's asset portfolio valuation by market value.
The bank pointed out that FOSUN INTL's stock price has risen by about 20% since early April, supported by improved sentiment and liquidity conditions in both the mainland and Hong Kong stock markets. With the improvement in market sentiment and valuations, the company can wait for opportunities to divest assets to optimize its portfolio, reduce debt, and increase cash flow for the holding company. However, the recent rise in stock prices has partially reflected this situation, with the stock price trading at a 62% discount to net asset value (NAV), which is one standard deviation above the two-year average. The bank believes that the revaluation of value will depend on clearer evidence of continued progress in asset sales and the acceleration of macroeconomic momentum in the mainland.
The bank currently gives FOSUN INTL a "Neutral" rating

