Stock Track | MINISO Group Soars 5.17% on Strong Earnings Outlook and Analyst Upgrades

Stock Track
2024/12/03

MINISO Group Holding Limited (MNSO) witnessed a soaring 5.17% surge in its stock price on Tuesday, driven by positive analyst actions and the company's upbeat earnings guidance.

Analysts at Nomura and DBS Bank expressed optimism towards MINISO's growth prospects and potential for further share price appreciation. Nomura raised its target price on MINISO's American Depositary Receipts (ADRs) to $26.30 from $25.60, maintaining a "buy" rating. DBS Bank also upgraded its rating on MINISO to "buy" with a price target of $26.20.

Despite a weaker-than-expected third-quarter performance, MINISO reiterated its full-year 2024 guidance, forecasting revenue growth of 20%-30% and an adjusted net profit of 2.8 billion yuan ($392 million). Analysts believe the Chinese retailer could gradually evolve into an attractive business model deserving a valuation premium, given its positive outlook for overseas operations and faster revenue and earnings growth anticipated in 2025.

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