Morgan Stanley released a research report stating that it has turned more positive on POP MART's (09992) sales growth outlook through 2026, as the firm believes the company has not yet fully unleashed all growth potential by 2025. Its ongoing tactical adjustments highlight a clear focus on business quality and sustainable growth. The bank maintains an "Overweight" rating with a target price of HK$382.

Morgan Stanley noted that Labubu pre-orders drove better-than-expected Q3 2025 performance, while POP MART has resumed spot sales to better manage product lifecycles and boost repeat customer growth. Management expects strong Q4 sales due to more holiday promotions and a robust product pipeline.

Offline sales in the U.S. continue to grow, supported by a more diversified IP portfolio and high store efficiency. The company plans to open more high-traffic flagship stores between 2026 and 2027. However, U.S. online sales may temporarily slow due to reduced pre-sale activities. The bank believes new product launches from top IPs should quickly reaccelerate growth.