In a report released today, Xiaopo Wei from Citi maintained a Buy rating on Chagee Holdings Limited Unsponsored ADR, with a price target of $43.70.
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Xiaopo Wei’s rating is based on the anticipation of increased competition among major food delivery platforms, which is expected to benefit Chagee Holdings Limited. The report highlights that Taobao Shangou has intensified its subsidies for food delivery, which could lead to a favorable environment for freshly made teashop players like Chagee during the peak beverage consumption season.
Furthermore, the expected share price return of 60.1% suggests a significant upside potential, reinforcing the Buy rating. The combination of these factors, along with the lifted subsidies of delivery platforms, positions Chagee as a promising investment opportunity within the next 30 days, as indicated by the Upside Catalyst Watch.
Wei covers the Consumer Cyclical sector, focusing on stocks such as Topsports International Holdings Limited, Chagee Holdings Limited Unsponsored ADR, and Green Tea Group Limited. According to TipRanks, Wei has an average return of -10.7% and a 47.37% success rate on recommended stocks.
In another report released on June 19, Deutsche Bank also initiated coverage with a Buy rating on the stock with a $40.50 price target.