ANTA Sports Products, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Walter Woo from CMB International Securities maintained a Buy rating on the stock and has a HK$105.30 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Walter Woo has given his Buy rating due to a combination of factors. Despite a cautious outlook in the short term, Woo maintains a positive long-term view on ANTA Sports Products. The company’s retail sales growth has been under pressure, particularly for the Anta brand, but the performance of new brands remains robust and healthy.
While ANTA faces challenges such as macroeconomic uncertainties and intensified competition, Woo believes that the company’s operational margin remains achievable, supported by healthy channel inventory and potential cost reductions. Although the target price has been adjusted downward due to guidance cuts and macroeconomic headwinds, the stock’s current valuation is considered reasonable compared to its historical average. Woo remains optimistic about ANTA’s mid to long-term growth prospects, especially in outdoor and overseas markets, despite acknowledging near-term risks.
Woo covers the Consumer Cyclical sector, focusing on stocks such as ANTA Sports Products, Green Tea Group Limited, and Li Ning Company. According to TipRanks, Woo has an average return of 3.0% and a 52.89% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$118.00 price target.