Morgan Stanley has updated its risk-reward assessment for WH Group (HKEX: 00288), trimming its 2026 earnings forecast by approximately 7%. This revision primarily reflects a weaker second-half guidance for North America and softness in the European pork market, partially offset by quarter-over-quarter improvements in Chinese packaged meat margins following the normalization of channel investments.

The investment bank has also lowered its 2027 and 2028 earnings projections by 7% to 9%, citing the reduced 2026 base as a key factor. Consequently, the target price has been cut by 7%, from HK$11.4 to HK$10.6. Despite the downward adjustments, Morgan Stanley remains positive on WH Group's vertical integration leadership in the global pork industry, along with its attractive valuation based on 2026 forecast price-to-earnings and EV/EBITDA multiples. The firm maintains its "Overweight" rating on the stock.