Following the release of HKEX's first-quarter results this year, Citigroup has updated its financial model. The bank noted that due to a robust IPO pipeline, which is expected to drive higher listing fee revenue, and an upward revision in the assumed investment return rate for internal corporate funds, leading to increased investment income, it has raised its earnings per share forecast for 2026 to 2028 by 3% to 5%. Consequently, Citigroup has increased HKEX's target price from HK$525 to HK$530, equivalent to a projected 2026 price-to-earnings ratio of 36 times, and maintains a "Buy" rating.
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