Market Chatter: Goldman Sachs Advising Nations on Managing US Trade Tensions
Goldman Sachs (GS.US) Chairman Su Dewei: Tariffs may have a huge potential impact on the profitability of enterprises.
Su Dewei stated that discussions regarding tariffs may have an impact on business sentiment and could bring significant potential effects on corporate profits and losses.
Goldman Sachs: Maintains CHINA TOWER 'Neutral' rating and lowers Target Price to 12.5 HKD.
Goldman Sachs released a research report stating that CHINA TOWER (00788) performed in line with previous guidance in the first quarter, with revenue and Net income increasing by 3.3% and 8.6% year-on-year, respectively. In response to the first quarter's performance, Goldman Sachs has lowered the revenue forecasts for CHINA TOWER by 0.8%, 1.4%, and 1.4% for 2025 to 2027, and cut the Net income forecasts by 3.7%, 4.1%, and 4.3%. The Target Price has been reduced from 13 HKD to 12.5 HKD, with a rating of 'Neutral'. Investors are generally concerned about the slowdown in the growth rate of the dividend payout ratio and the decline in telecom operators' 5G-related capital expenditures. Goldman Sachs noted that most tower-type Assets will reach the point of depreciation.
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Goldman Sachs: Downgraded the EBITDA and Net income forecast for China United Network Communications, reducing the Target Price to HKD 10.
Goldman Sachs released a research report stating it has lowered the EBITDA margin forecast for China United Network Communications (00762), and reduced the EBITDA and Net income forecasts for the company from this year to 2027 by up to 1.6% and up to 6%, respectively. The Target Price for listed H shares has been reduced from HKD 10.5 to HKD 10, with an enterprise value multiple (EV/EBITDA) of 2.5 times for 2026, down from the original target of 2.6 times, while maintaining a "Buy" rating. In the first quarter, China United Network Communications reported an EBITDA of 26.6 billion yuan, which is roughly in line with the bank's expectations. The Net income was 5.6 billion yuan, lower than the forecast.
Goldman Sachs expects the U.S. Treasury to maintain the nominal Bonds issuance scale, with a moderate expansion of inflation-protected securities.
The Goldman Sachs interest rate strategy team predicts in the latest Research Reports that the USA Treasury will maintain the nominal coupon bond auction scale in the upcoming quarterly Refinancing plan, while moderately expanding the inflation-protected securities (TIPS). Analysts point out: "We believe the Treasury is very likely to retain the statement that 'at least in the next few quarters, the existing coupon bond scale will be maintained.'" Strategists warn that if this statement is abandoned or the wording is significantly weakened without a clear alternative, it may trigger market concerns about increased duration supply, thereby pushing up term premium pressure again. Goldman Sachs expects the nominal bond auction scale to remain.
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, Tariffs Exempt Apple, Nvidia: Can Buy Now? Hope this helps a little in navigating the volatility!