“Core assets” are too expensive to buy? Take a look at this “stock picking guide.” With the completion of the basic disclosure of the 2020 annual performance forecast, major brokerage research institutes have also adjusted their ratings and target prices for listed companies based on the performance forecast.
In terms of quantity, since late January, the number of brokerage research reports has blown out. Choice data shows that since February, there have been nearly 1,000 company research reports that have only given a “buy” or “force push” rating. The editor combed and found that with the recent deduction of the ultimate leading style of A-shares, many popular leading stocks, including Amic and CDF, have broken through the recent target prices given by brokers.
In addition to these popular stocks, comparing the latest research reports and stock prices of brokerage firms, 43 stocks have an expected upside of more than 50%, of which 8 are expected to double in the Year of the Ox.
Can “Moutais” still go down?
On February 10, CITIC Securities issued a research report and gave Kweichow Moutai a target price of 3,000 yuan. On the same day, Anxin Securities also gave a target price of 2,710 yuan. The latest closing price of Kweichow Moutai is 2601 yuan. If calculated according to the target price of 3,000 yuan, there is still about 15% of the expected upside.
The CITIC Securities Research Report stated that in the short term, non-standard Moutai products are expected to be the first to catalyze growth, maintain the price stability of ordinary Feitian Moutai, and consolidate potential price increases. Looking at the longer dimension, the company has a solid foundation for a steady increase in volume and price, with a high certainty of long-term performance growth, and is expected to fully enjoy the valuation premium. The 2021 Spring Festival dynamic sales will continue to build a stronger consensus. The investment in the liquor sector is still optimistic. Moutai has both offensive and defensive capabilities, and more catalysts are expected to lead the industry to rise.
However, while Kweichow Moutai has recently hit a new high, news of institutions’ reductions in its holdings has also continued to spread. In the fourth quarter of 2020, the world’s largest fund holding Moutai, the “America Fund-Europe Asia Pacific Growth” fund, reduced its holdings of Moutai by 450,000 shares. As of the end of 2020, the fund held a market value of 2.189 billion US dollars, equivalent to 14.195 billion yuan. During the Spring Festival, UBS (Luxembourg) Equity Fund-China Opportunities (USD) also reported reducing its holdings of Moutai. As of the end of January, Kweichow Moutai was the fund’s fifth-largest stock with a market value of 8.16. One hundred million U.S. dollars. Compared with the end of 2020, the fund’s holdings in Kweichow Moutai decreased by 3.66% Spark Global Limited.