Intel stock extends gains after report of possible U.S. government stake
Investing.com - Goldman Sachs has upgraded Gambol Pet Group Co (301498:CH) from Neutral to Buy, while slightly lowering its price target to RMB120.00 from RMB121.00.
The investment bank believes the recent stock correction is overdone and presents a good entry point, noting that Gambol’s domestic business remains strong. Goldman Sachs calculates the company’s fair value at RMB45 billion within its sum-of-the-parts methodology, 22% higher than its last market capitalization of RMB37 billion.
Goldman Sachs expects Gambol’s domestic sales to maintain solid growth of 32% year-over-year in the second quarter of 2025, contrasting with declining sales among non-leading domestic competitors.
The firm cites several factors supporting Gambol’s market share gains: its leading brand image with strong word of mouth, a multi-brand strategy capturing diverse consumer demands, an established R&D system with solid pet research, and proven product innovation capabilities that align with the industry’s functional-oriented trend.
Goldman Sachs also notes that with the pet food industry remaining fragmented, with long-tail competitors representing 70% market share, new products and consumers’ increasing focus on food quality and function are driving a clear consolidation trend that benefits established players like Gambol.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.