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POP MART Bear Analyst Cuts TP, Questions Overseas Growth Story
Recommend 9 Positive 15 Negative 8 |
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Bernstein's Melinda Hu, the only analyst in the market with Sell-equivalent rating on POP MART (09992.HK), slashed her target price for the stock from $225 to $181, according to Bloomberg. The stock's 23% rise last week was driven more by technical factors and share buyback news than by changes in the Company's fundamentals, she noted. Bernstein's tracking data shows weakening sales in the US, where business expansion has been a premium factor in the Company's growth story and valuation, she added. If the international market does not expand as planned, the stock risks reverting to a China-centric story, leading to valuation compression. The rapid sell-out of the Twinkle Twinkle series and PUCKY products indicates that the Company still has enthusiastic fans, and can create hype for new product launches, Hu further stated. However, the key is whether this hype can translate into stable traffic and repeat purchases across a broader product line, especially in emerging markets. AASTOCKS Financial News Website: www.aastocks.com |
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