JPMorgan downgraded ZTO Express (ZTO) to Neutral from Overweight with a price target of $23, down from $25. The firm cites the recent share price rebound for the downgrade. While ZTO’s fiscal 2024 results were a beat, the company’s strategic shift to focus more on volume growth is creating challenges by potentially diluting margins and possibly risking its market proposition, the analyst tells investors in a research note. JPMorgan now sees a balanced risk/reward and believes ZTO’s commitment to shareholder returns through repurchase plans and dividends limits absolute downside.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ZTO:
- ZTO Express Reports Strong Growth in 2024 Financial Results
- ZTO Express options imply 6.4% move in share price post-earnings
- Zto Express (Cayman), Inc. Sponsored Adr Class A (ZTO) Q4 Earnings Cheat Sheet
- ZTO Express Announces Share Cancellation Impacting Issued Shares
- ZTO Express Reports Stable Share Capital for February 2025