MINISO Group Holding Limited (MNSO) stock soared 17.19% in Monday's intraday trading session, driven by analyst optimism surrounding the company's earnings growth prospects and positive business outlook.
Despite weaker-than-expected third-quarter results, Nomura analysts believe MINISO Group's earnings growth remains intact. The company reiterated its full-year 2024 guidance for 20%-30% revenue growth and an adjusted net profit of CNY2.8 billion (approximately $400 million).
Looking ahead, MINISO Group expects faster revenue and earnings growth in 2025, bolstered by a positive outlook for its overseas business. Analysts at Nomura raised their target price on MINISO Group's American Depositary Receipts (ADRs) to $26.30 from $25.60, maintaining a "buy" rating. They noted that the Chinese retailer could gradually evolve into an attractive business model deserving a valuation premium in the long term.
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