Morgan Stanley cut the target price on HMC Capital after lifting the equity beta for the DCF valuation to 1.4 from 0.85 previously to account for higher risks. The new target is down to $6.30 from $7.35.

The broker, however, highlights its bull/bear valuation for this stock is a very wide -40%/65% compared to the coverage universe of 30%/40%.

The broker also provided other valuation methods for this stock, which return a $4.20-4.60 value using the current market value method and $3.00-5.95 using recurring income.

Equal-weight maintained. The broker's preferred fund manager is Charter Hall Group ((CHC)).

Sector: Real Estate.

Target price is $6.30.Current Price is $5.26. Difference: $1.04 - (brackets indicate current price is over target). If HMC meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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