Hongkong Electric "neutral," target price raised

01/02/08 - Credit Suisse

NEW YORK, January 2 (newratings.com) - Analyst A Chan of Credit Suisse maintains his "neutral" rating on Hongkong Electric Holdings (HEH). The target price has been raised from HK$42.0 to HK$48.5.

In a research note published this morning, the analyst mentions that the government has approved the construction of the MTRC Island south and west lines. Hongkong Electric is likely to receive the approval for incurring capex of HK$13.5 billion in Hong Kong in 2009-2013, the analyst says. The upward revision in the target price reflects a shift in the base year, Credit Suisse adds.