CITIC Securities gets JPMorgan upgrade after 1Q profit beat

JPMorgan Chase & Co. upgraded its rating on CITIC Securities Co.'s A-shares after the brokerage's preliminary first-quarter results significantly beat market expectations.

The bank's analysts raised their recommendation for the Shanghai-listed shares to "Overweight" from "Neutral," according to a new research report. The rating on the company's Hong Kong-listed H-shares was maintained at "Neutral."

JPMorgan lifted its price target on the H-shares (06030.HK) by 17 percent to HKD29.6 from HKD25.3. For the A-shares (600030.SH), the target was increased by 23 percent to RMB33 from RMB26.8. The upgrade was attributed to a strong start to the year, which JPMorgan believes will help CITIC outperform its peers.

The bank noted positive trends are likely to continue, citing strong growth momentum in international business from rising client demand and increased activity. JPMorgan also expects a persistent recovery in institutional business, driven by regulatory support and growth in asset management scale, which will benefit leading brokers like CITIC. To reflect the strong business momentum, the bank raised its net profit forecasts for CITIC from 2026 to 2028 by 6 to 7 percent.

The positive earnings surprise and subsequent upgrade from a major bank may boost investor confidence in the near term. Investors will watch for the full earnings report to confirm the preliminary results and for signs of continued market share gains in April.

This article is for informational purposes only and does not constitute investment advice.