STOCKS | Citi Cuts WH Group Target Price On Smithfield Outlook

WH Group fell 2.8% to HK$6.90, extending its losing streak to two sessions and bringing the cumulative decline to 7.1%, according to ETNet. Citi cut its target price on WH Group to HK$8.20 from HK$9.90, while keeping a Buy rating. The bank said Smithfield, the company's U.S. subsidiary, further lowered its third-quarter operating outlook and now expects a fresh pork adjusted operating loss of $70 million to $90 million, citing a downtrend in pork prices. Citi also trimmed its 2026-2028 net profit forecasts for WH Group by 10% to 11% and its adjusted profit estimates by 18%. It said cash flow remains uncertain as the company faces operating challenges, and reduced its dividend payout ratio assumption to 50% from 66% while widening its holding company discount to 20% from 10%.