0454 GMT - Chinese milk tea chain Chagee is likely to post stronger earnings growth than previously expected, according to Jefferies in a research note. Improving same-store sales growth in China increase Jefferies' confidence in management execution, the analysts say. "We turn more constructive on long-term growth," they say. This drives Jefferies to raise Chagee's net profit forecast of 2027 and 2028 by 3% and 5%, respectively, the analysts say. 3Q results are expected to be published in late November and will likely serve as a near-term catalyst, they say. Jefferies upgrades Chagee to buy from hold and raises target price of its ADRs to US$14.90 from US$11.80. Its ADRs last traded at US$12.48.
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