Morgan Stanley has issued a research report assigning POP MART (09992) a target price of HK$325, based on a projected 2026 price-to-earnings ratio of 26 times. The firm maintains an "Overweight" rating, anticipating a potential valuation reassessment driven by sustained sales momentum in both the Chinese and overseas markets, successful product line expansions, and new IP-centric initiatives. Compared to other major global consumer companies, POP MART is forecasted to deliver significantly higher profit growth.

Morgan Stanley views the company's share buyback program as an effective catalyst, while the strong popularity of new IP products such as Twinkle Twinkle and Skullpanda is expected to continue driving its IP product operations. Given current investor positioning, the stock may still have room for appreciation during March and April.

From a broader perspective, Morgan Stanley believes POP MART will deliver more surprises in product design this year. Collaborations such as the IP product Labubu with Moynat, reports of a Labubu film being produced by Sony Pictures, and the addition of LVMH's China CEO to the company's board all signal that POP MART's cultural influence is increasingly recognized by top industry leaders. The firm also believes the company has secured more effective marketing resources for its upcoming product launches, which is crucial for boosting the popularity of its IPs.

However, based on market feedback, Morgan Stanley notes that some investors remain pessimistic despite the share repurchase program, citing concerns such as U.S. credit card data, resale prices, and social media engagement metrics. As a result, short interest is expected to remain elevated ahead of the company's earnings release in late March.