Citi Anticipates Accelerated Profit Growth for EB ENVIRONMENT (00257.HK), Raises Target Price to $5.4

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Jan 07 2026

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00257+0.39%

Should l Buy 00257?

Source: aastocks

Citi Research Rating: Citi Research has maintained a Buy rating on EB ENVIRONMENT (00257.HK), anticipating that the company's positive free cash flow in 2025 will cover financing costs and dividends, supporting continued dividend growth.
Profit Forecasts and Target Price: The broker has raised its net profit forecasts for 2026 and 2027 by 2-3% due to reduced financing costs and has increased the target price for EB ENVIRONMENT from $5 to $5.4, reflecting higher free cash flow and lower capital costs.

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Analyst Views on 00257

Wall Street analysts forecast 00257 stock price to rise

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 5.100

Low

Averages

High

Current: 5.100

Low

Averages

High

BofA Securities

Buy

maintain

2026-01-08

Reason

BofA Securities

Price Target

AI Analysis

2026-01-08

maintain

Buy

Reason

The analyst rating of "Buy" for EB ENVIRONMENT (00257.HK) by BofA Securities is based on several key factors: 1. Potential Doubling of Free Cash Flow (FCF): The expectation that the company's FCF will double to $9 billion in 2025, primarily due to a significant increase in renewable energy subsidies and a reduction in capital expenditure. 2. Gradual Increase in Dividend Per Share (DPS): The anticipated increase in DPS is supported by an approximate 20% FCF yield and a forecasted earnings per share (EPS) compound annual growth rate (CAGR) of 11% from 2024 to 2027. 3. Revaluation Potential: The potential for revaluation stemming from a proposed A-share issuance. 4. Attractive Dividend Yield: A projected dividend yield of 5.7% for 2026, which adds to the attractiveness of the investment. 5. Stable Operating Profit Growth: The company's operating profit growth remains stable, with no deterioration in accounts receivable, indicating financial health. These factors collectively contribute to the positive outlook and the decision to maintain a "Buy" rating, along with an increase in the target price from $5.3 to $6.2 based on discounted cash flow analysis.

Citi Research

Buy

maintain

2026-01-07

Reason

Citi Research

Price Target

2026-01-07

maintain

Buy

Reason

Citi Research reiterated a Buy rating on EB ENVIRONMENT (00257.HK) due to several positive factors: 1. Increasing Positive Free Cash Flow: The expectation that by 2025, the company's free cash flow will be sufficient to cover financing costs and dividend distributions for the first time, which supports continued dividend growth. 2. Prudent Capital Expenditure: The company is focusing its capital expenditure on overseas projects that are expected to yield higher returns compared to domestic projects. 3. Dual Listing Catalyst: The anticipated dual listing on the A-share market is expected to drive a re-rating of H-share value. 4. Improved Profit Forecasts: Reduced financing costs have led to an increase in net profit forecasts for 2026 and 2027 by 2-3%. This year's profit growth is expected to accelerate due to lower foreign exchange losses, financing costs, and impairment losses. As a result of these factors, Citi Research raised its target price for EB ENVIRONMENT from $5 to $5.4.

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About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

BofAS Increases Price Target for EB ENVIRONMENT (00257.HK) to $6.2, Maintains Buy Rating

Jan 08 2026aastocks

BofA Securities Rating: BofA Securities maintains a Buy rating for EB ENVIRONMENT (00257.HK), increasing the target price from $5.3 to $6.2 based on projected financial growth.
Free Cash Flow Projections: The report anticipates a doubling of free cash flow to $9 billion in 2025, driven by increased renewable energy subsidies and reduced capital expenditure.
Dividend and Earnings Forecast: The company is expected to gradually increase its dividend per share, supported by a 20% free cash flow yield and an estimated EPS CAGR of 11% from 2024 to 2027.
Market Conditions: Despite a significant short selling ratio and a stable operating profit, there are no acquisition targets, and accounts receivable remain stable.