Analyst Fan Tso from Bank of America Securities reiterated a Hold rating on ZTO Express and increased the price target to $22.00 from $19.00.
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Fan Tso has given his Hold rating due to a combination of factors influencing ZTO Express’s current and future performance. The company’s second-quarter 2025 adjusted net profit fell short of expectations, coming in significantly lower than both the analyst’s and the market’s estimates. This underperformance is attributed to increased costs and a slowdown in volume growth, which have led to a downward revision of the company’s earnings per share forecast for the fiscal year 2025.
Despite these challenges, there are positive aspects such as the anticipated stabilization of average selling prices and the company’s strategic investments in technology and autonomous vehicles, supported by a robust balance sheet. However, regulatory constraints that hinder market consolidation and the difficulty in achieving simultaneous profit and market share growth have led to a cautious outlook. As a result, while the price objective has been raised, the overall recommendation remains neutral, reflecting a balanced view of the risks and opportunities facing ZTO Express.