Goldman Sachs: Downgrades earnings forecasts for Hong Kong bank stocks, lowers target prices and ratings for BOC HONG KONG and BANK OF E ASIA

Goldman Sachs published a research report indicating that it has lowered the earnings per share estimates for Hong Kong bank stocks for the years 2025 to 2027 by 14%, 19%, and 15% respectively, with an average reduction of 16% and an average target price reduction of 9%. Goldman Sachs stated that it currently expects the Federal Reserve to cut interest rates five times this year, and the decline in net interest margin and rising credit costs will add downward risks for local banks in Hong Kong. Given the expected weak growth in loan business and declining profitability, it is difficult to see significant valuation re-evaluations. It has downgraded the rating of BOC Hong Kong from "Buy" to "Neutral," with the target price reduced from HKD 31.9 to HKD 29.5, and downgraded the rating of Bank of East Asia from "Neutral" to "Sell," with the target price lowered from HKD 10.7 to HKD 9.4. Goldman Sachs maintains a "Buy" rating on HSBC with a target price of HKD 98