ZTO Express price target lowered to $31 from $36 at Bernstein

Bernstein lowered the firm’s price target on ZTO Express to $31 from $36 and keeps an Outperform rating on the shares. The firm notes the company’s Q2 profits exceeded expectations, due to significant cost reductions, despite disappointing revenue results driven by a fall in ASP. While parcel volume was in line with expectations, revenue still ended up 5% short of consensus. ZTO’s modest +0.5 point market share gain is a bit disappointing, Bernstein says, largely due to intensifying competition and a cautious ASP strategy.