Goldman Sachs analyst Leaf Liu downgraded the rating on China Feihe Limited to a Hold today, setting a price target of HK$4.30.
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Leaf Liu has given his Hold rating due to a combination of factors affecting China Feihe Limited’s financial outlook. The company reported a significant decline in both sales and net profit for the first half of 2025, with further reductions expected for the full year. This is attributed to ongoing inventory reduction efforts and delays in launching new premium products, which are expected to continue impacting performance into the latter half of the year.
Despite efforts to enhance the product mix and achieve steady growth in the online segment, the company faces challenges from excessive raw milk supply and increased marketing expenses needed to regain market share. Consequently, earnings estimates have been revised downward, and the target price has been adjusted to reflect these challenges. The competitive landscape remains a concern, prompting a cautious outlook and a Hold rating as the company navigates these headwinds.
According to TipRanks, Liu is a 3-star analyst with an average return of 5.5% and a 52.00% success rate. Liu covers the Consumer Defensive sector, focusing on stocks such as Nongfu Spring Co., Ltd. Class H, China Feihe Limited, and China Resources Beer (Holdings) Co.
In another report released today, Citi also maintained a Hold rating on the stock with a HK$4.30 price target.