"Big Banks" Bank of America: If Watsons successfully goes public, the valuation may far exceed current estimates. It gives CK Hutchison Holdings a target price of HKD 62 and urges "Buy"

Bank of America Securities cited market reports indicating that CK Hutchison Holdings (00001.HK) subsidiary Watsons Group plans to conduct a dual listing in Hong Kong and London, potentially as early as the second quarter, with a company valuation of approximately USD 30 billion and an IPO or fundraising of USD 2 billion. If successful, Watsons' valuation will be significantly higher than the bank's current valuation of Watsons when calculating CK Hutchison's net asset value for the fiscal year 2026.

The bank maintains a "Buy" rating on CK Hutchison, as it expects solid performance for the fiscal year 2025 and believes that its current valuation is attractive, especially as the company seems to be taking more proactive steps to unlock value; target price is HKD 62