Analyst Walter Woo from CMB International Securities maintained a Buy rating on Xtep International Holdings and increased the price target to HK$7.39 from HK$7.20.
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Walter Woo has given his Buy rating due to a combination of factors that highlight Xtep International Holdings’ strong performance and growth potential. The company’s first-half results for 2025 exceeded expectations, driven by additional income and the performance of the Saucony brand. Despite a challenging macroeconomic environment, Xtep is expected to meet its fiscal year 2025 guidance, supported by a favorable valuation of 11 times the projected earnings for the year.
Retail sales have shown improvement, particularly in the third quarter of 2025, with both the core Xtep and Saucony brands experiencing accelerated growth. The company is also poised to benefit from new product launches and an expansion in its kids’ wear segment, which has been rebranded as ‘Xtep Youth.’ Additionally, the Saucony brand is expected to continue its growth trajectory, with new flagship products and store expansions planned, reinforcing confidence in achieving its sales targets. These factors collectively underpin the Buy rating assigned by Walter Woo.
According to TipRanks, Woo is a 3-star analyst with an average return of 3.5% and a 56.76% success rate. Woo covers the Consumer Cyclical sector, focusing on stocks such as Xtep International Holdings, Green Tea Group Limited, and Li Ning Company.
In another report released today, Nomura also maintained a Buy rating on the stock with a HK$8.20 price target.