Damo: I believe ICBC's (01398) stock price is likely to rise in the next 60 days

The Zhitong Finance App learned that Morgan Stanley released a research report saying that it believes the stock price of ICBC (01398) will definitely rise in the next 60 days. It is estimated that the probability of this scenario occurring is about 60% to 70% (or “very likely”). The rating is “increase in holdings”, and the target price is HK$6.9. Damo expects that lower deposit interest rates than expected will support net interest spreads and offset the negative impact of a moderate reduction in the loan market quoted interest rate (LPR). The policy direction clearly shifts to support banks' net interest spreads. Along with more rational credit growth and a more stable interest rate environment, it should help stabilize net interest spreads, and even promote a gradual rebound in net interest spreads. The bank sees ICBC as an attractive return opportunity, with a dividend yield of 6.2%.