Qianlei Fan, an analyst from Morgan Stanley, maintained the Buy rating on ZTO Express. The associated price target remains the same with $23.80.
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Qianlei Fan has given his Buy rating due to a combination of factors that highlight ZTO Express’s strategic financial maneuvers and potential for growth. The recent repurchase of shares by ZTO Express, amounting to US$7.5 million, is a significant move that demonstrates the company’s commitment to enhancing shareholder value. This buyback follows a substantial US$0.98 billion convertible bond repurchase, indicating a consistent strategy to optimize capital structure and return value to investors.
Furthermore, Qianlei Fan anticipates that ZTO Express will continue its share repurchase activities, provided there is available offshore USD cash, even as it approaches its blackout period. The possibility of setting up automatic repurchase rules suggests a proactive approach to maintaining this strategy. These actions, coupled with the company’s strong market position in the Asia Pacific transportation and infrastructure sector, underpin the positive outlook and the Buy rating assigned by Qianlei Fan.
According to TipRanks, Fan is an analyst with an average return of -7.0% and a 34.21% success rate.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $21.00 price target.