Damo: Lowered ZTE's (00763) profit forecast target to HK$31.5

The Zhitong Finance App learned that Morgan Stanley released a research report saying that ZTE (00763)'s risk-return analysis has been updated, and the company's 2025-2027 revenue forecast was lowered to 5%, 6%, and 7% based on lower than expected results for the third quarter of this year, and the gross margin forecast was lowered by 0.9%, 0.5%, and 0.4% to reflect that domestic 5G business revenue did not meet expectations. As a result, Damo lowered the company's profit forecast for 2025 to 2027 by 11.1%, 12.5% and 10.9%, respectively; and lowered the target price from HK$35 to HK$31.5 accordingly; the rating was “in sync with the market”.