Yangzijiang: Citi downgrades to 'Sell' vs 'Buy' but raises TP raised to $1.25 from $1.20. SOTP valuation relatively unchanged at $1.25, but see no re-rating catalyst in sight. Firm highlights 1) the huge margin disparity between pre-crisis backlog and new orders is unlikely to narrow; and 2) risks of a sharp collapse in ‘14 earnings should not be overlooked.
We note that downgrade comes on back of a few upgrades on counter to Buy by various houses the last few days, notably by Merrill and Credit Suisse.
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