Chagee Could Benefit From Industry Tailwinds -- Market Talk

Dow Jones
2025/06/19

0647 GMT - Chinese bubble-tea chain Chagee could benefit from industry tailwinds, Deutsche Bank's Han Zhang says in a research note. The analyst expects Chagee's net profit to post compound growth of 24% between 2025 and 2027, citing its well-protected leading premium position, a healthy pace of store openings domestically amid a rapidly growing tea industry and a gross-profit margin uptrend. She reckons that Chagee's gross merchandise value per store in China should normalize on a healthier pace of store openings and product innovation. DB initiates coverage on Chagee with a buy rating and sets its ADR target price at $40.50. The ADRs last ended flat at $28.30. (sherry.qin@wsj.com)

 

(END) Dow Jones Newswires

June 19, 2025 02:47 ET (06:47 GMT)

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