Goldman Cuts China Index Target While Retaining Overweight Call

(Bloomberg) — Goldman Sachs Group Inc. cut its target for the MSCI China Index on earnings and currency concerns, but maintained its overweight recommendation, saying investors’ fears have been priced in.

The bank lowered its target to 70 from 80 as it reduced its earnings estimates due to an uneven economic recovery and a stronger forecast for the greenback versus the yuan. The index closed at 58.80 Thursday, with the new target implying a 19% upside by March 2024.