Morgan Stanley raised its earnings forecasts for BOC HONG KONG for 2025-2027 by 3%, 2%, and 2% respectively, due to several factors. The increase was driven by expectations of higher net interest income resulting from HIBOR, as well as strong anticipated performance in wealth and market-related fees, which would boost fee income. Additionally, improved cost discipline led to a reduction in cost forecasts for the same period. Despite these positive adjustments, Morgan Stanley maintained an "Underweight" rating and raised the target price from $33.4 to $35.7, indicating a cautious outlook on the stock.
