Miniso downgraded to Underperform from Buy at BofA

BofA downgraded Miniso to Underperform from Buy with a price target of $12.60, down from $25.60, after the company announced it will acquire 29.4% of Yonghui Superstore for total consideration of RMB 6.27B, becoming its largest shareholder. While BofA continues to believe Miniso’s core business “enjoys a solid outlook,” the firm thinks the Yonghui transaction “raises more questions than answers,” increasing the company’s risk profile and adversely impacting investors’ perception.