Street Calls of the Week
Investing.com - Jefferies downgraded Proya Cosmetics Co Ltd (SHA:603605) from Buy to Hold on Wednesday, while reducing its price target to RMB102.00 from RMB115.00.
The downgrade follows what Jefferies described as "lackluster" second-quarter performance from the Chinese cosmetics company, which revealed subdued consumer demand in China’s beauty market.
Jefferies cited increasing competition in China’s online beauty channels as another factor contributing to its more cautious outlook on the company.
While the investment firm acknowledged that Proya’s Star Product line has been validated by both the market and consumers, it noted a lack of strong growth drivers for the company moving forward.
The downgrade also reflected concerns about management changes at Proya and reduced confidence in the company’s long-term targets, according to Jefferies’ assessment.
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