In a report released today, Fan Tso from Bank of America Securities reiterated a Buy rating on ZTO Express (ZTO – Research Report), with a price target of $24.00.
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Fan Tso has given his Buy rating due to a combination of factors including ZTO Express’s attractive valuation and its strategic focus on market share. Despite a slight deceleration in parcel volume growth in April, ZTO’s overall growth remains robust, with a 19% year-over-year increase in the first four months of 2025. This positions the company well against its full-year volume growth target of 20-24%.
Moreover, ZTO’s financial outlook appears promising, with a projected 12% year-over-year revenue growth for the first quarter of 2025 and a modest improvement in unit transportation costs. The company’s market share strategy and above-sector average dividend yield further enhance its investment appeal. Given these factors, Fan Tso reiterates a Buy rating with a price objective of 24.00 USD.
In another report released on May 13, Morgan Stanley also reiterated a Buy rating on the stock with a $19.00 price target.