SELL Jusco Stores Daiwa Institute of Research has reiterated its underperform rating but downgraded its earnings estimates for the supermarket chain on the back of higher than expected losses from the new stores in China. Analyst Natalie Chow has revised downward her earning forecasts by 9.8 per cent to $57 million for this year and by 9.3 per cent to $63 million for next. She said operating profits for China operations would drop by 88 per cent to $4 million this year because of the $20 million expected operating losses from three new stores in the mainland. Ms Lai set a target price of $1.75 for the stock. BUY Hongkong.com SBI E2 Capital has initiated coverage on the portal with a 'buy' recommendation, citing the attractive upside potential of the counter. Analysts Clement Wong and Marcus Lam said the newly acquired short messaging services business Newpalm would become the key growth driver this year. Newpalm has generated a turnover of US$3.5 million for the first quarter. The stock was attractively priced, the analysts said. It is trading at a price to net cash per share of two times, compared with the average of 13.2 times for its Nasdaq-listed peers. The brokerage has a price target of 87 Hong Kong cents. HOLD BOC Hong Kong Core Pacific-Yamaichi has maintained its 'hold' rating on the bank but has upgraded its earnings estimates by 8 per cent this year on the bank's change in the general provision policy. Analyst Bonnie Lai said that BOC might release some of its $6.36 billion general provision. But Ms Lai is concerned about BOC's heavy property exposure as falling property prices could hit the bank's bottom line via mortgaged loan loss and its own property provisions. She projected that the bank's earnings this year would fall 4.5 per cent and has a valuation of $8.70 on the counter.