In a report released yesterday, Walter Woo from CMB International Securities maintained a Buy rating on Xtep International Holdings, with a price target of HK$7.20.
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Walter Woo has given his Buy rating due to a combination of factors influencing Xtep International Holdings. Despite a slight underperformance in the second quarter of 2025, the company’s guidance for the full year remains intact, with expectations for positive sales and profit growth. The firm’s conservative approach and healthy inventory levels suggest that sales growth can be sustained into the second half of 2025, supporting the Buy recommendation.
Furthermore, the Xtep brand is expected to benefit from strong growth in its running segment, with professional products showing significant year-over-year growth. The upcoming launch of new flagship running shoes and anticipated improvements in e-commerce sales during major shopping festivals are additional positive factors. The Saucony brand also shows promise with its ongoing offline expansion and product category growth. Given these considerations and the stock’s current valuation, Walter Woo maintains a target price of HK$ 7.20, based on a 14x FY25E P/E ratio.
According to TipRanks, Woo is a 3-star analyst with an average return of 2.5% and a 53.27% success rate. Woo covers the Consumer Cyclical sector, focusing on stocks such as Li Ning Company, Cafe de Coral Holdings Ltd., and Jiumaojiu International Holdings Ltd..