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ubs downgrades china power stock to neutral with lower price target
UBS has downgraded China Power International's stock rating from Buy to Neutral, lowering the price target to HK$3.00 from HK$5.10. This adjustment reflects concerns over a projected 6% tariff cut in 2025 and reduced coal power utilization due to slower power demand growth, with earnings estimates for 2025-2027 now 14% to 29% below consensus. The stock has already declined 9% this year, and UBS believes the current market price accounts for these anticipated challenges.
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