Jefferies raises Cafe de Coral target price to HK$6.90 with 'Buy' rating maintained

Deep News
Yesterday

Jefferies released a research report stating that CAFE DE CORAL H (00341) is executing its multi-year transformation plan as scheduled in the second half of fiscal year 2026. The firm expects same-store sales declines to narrow as profitability improves, while the Greater Bay Area business is set to benefit from stronger delivery penetration. The target price has been raised from HK$6.6 to HK$6.9, with a "Buy" rating maintained.

The brokerage now forecasts the company's net profit for fiscal year 2027 at HK$258 million, representing a 3.6% increase from its previous projection. This revision mainly reflects margin improvements driven by the streamlining of Hong Kong store networks, as well as enhanced profitability at Greater Bay Area outlets.

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