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"clt Solutions" Say China Stocks Cheapest Vs Analyst Targets.
In a note to shareholders this week, CLT Solutions said that this has resulted from an overreaction in the market, but stated that the recent decline should be seen as healthy, in that it tends to drive away speculators who add unwanted volatility to prices. This month’s slump stopped a rally that had sent the Shanghai Composite up 103 percent from a November low on prospects the government’s 4 trillion yuan ($586 billion) stimulus program and a record amount of new loans will ensure the economy grows at least 8 percent this year. The Standard & Poor’s 500 Index has climbed 51 percent from a 12-year low in March. Companies in the U.S. equity benchmark are trading 6 percent below analysts’ target prices on average, the CLT Solutions report said. The Bombay Stock Exchange Sensitive Index in India, the second-largest emerging market after China, has jumped 93 percent from its March low and its companies are priced 2.6 percent above analysts’ targets, the data show. CLT Solutions singled out Industrial & Commercial Bank of China Ltd. For special mention, pointing out that the world’s largest bank by market value, is currently trading 33 percent below the average price target of analysts. The Beijing-based lender posted higher-than-estimated second-quarter profit and has a “buy” rating from 25 of 30 analysts tracked by Bloomberg. Another equity deemed worth mentioning by CLT Solutions was Shanghai-based Baoshan Iron & Steel Co., China’s largest steelmaker, which they claim may as much as double in 2010. The overall sentiment from CLT Solutions was to expect to see the China stock market continue to hit new highs on the basis that the worst is almost certainly over now. Article Directory: http://www.articledashboard.com |
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