BofA Securities slashed Country Garden’s target price by 30% to HK$0.9

 

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Distressed Chinese property developer Country Garden reported weaker-than-expected earnings results for the first half of the year, said BofA Securities in a note.

The broker is cautious about the outlook of the homebuilder’s contracted sales due to weak home purchase demand in lower-tier cities and the company’s tight liquidity is also a major uncertainty about its ability to continue as a going concern, according to the note.

BofA Securities kept the rating on Country Garden unchanged at Underperform, but slashed its target price by 30% to HK$0.9.

Country Garden’s shares surged 14.6% to close at HK$1.2 on Monday.