Chagee initiated with a Neutral at Macquarie

Macquarie initiated coverage of Chagee (CHA) with a Neutral rating and $19 price target The company had a successful core-product strategy, but lack of product innovation has hindered its sustainable growth, the analyst tells investors in a research note. Following consecutive quarters of negative SSS growth, Chagee’s strongest catalyst could be a potential menu refresh, the firm added, further noting that the stock is currently trading at a “valuation trough” of 12-times expected earnings.