SINGAPORE (Reuters) -Hong Kong stocks are cheap but may miss out on the benefits of China's economic support, analysts at Goldman Sachs said, while Morgan Stanley warned tensions and tariffs could hurt,

Goldman Sachs and Morgan Stanley are two of the largest investment banks, excelling in Wealth Management, M&A, Trading, and Brokerage. Despite frequent comparisons, the banks have distinct differences in their business plans, priorities, and strategic visions.

Wall Street brokerages have turned more cautious on Chinese stocks as persistent deflationary pressures and geopolitical tensions cloud the outlook for earnings in the world’s second-largest equity market.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $120.3, a high estimate of $142.00, and a low estimate of $105.00. This upward trend is evident, with the current average reflecting a 11.39% increase from the previous average price target of $108.00.

Hong Kong stocks are cheap but may miss out on the benefits of China's efforts to support its economy, analysts at Goldman Sachs said, while downgrading their recommendation on the market. "Although valuations are not demanding,

Goldman Sachs and Morgan Stanley downgraded their forecasts for Hong Kong and Chinese stocks, citing economic concerns and potential political impacts. While bullish on mainland China, Goldman Sachs believes Hong Kong will see limited growth and recommends mainland investments due to lower global sensitivity.