Jefferies upgrades Miniso stock rating to Buy on China store expansion

Published 22/08/2025, 08:46
Jefferies upgrades Miniso stock rating to Buy on China store expansion

Investing.com - Jefferies upgraded Miniso (NYSE:MNSO) from Hold to Buy and raised its price target to $26.20 from $18.50 on Friday. The stock, which has surged over 12% in the past week and boasts a market capitalization of $6.76 billion, currently trades at $22.17. According to InvestingPro analysis, Miniso shows strong financial health with an overall score of "GREAT."

The upgrade follows Miniso’s better-than-expected second-quarter 2025 operations, with same-store sales turning positive in China and the resumption of new store openings during the quarter.

Miniso has increased its 2025 sales guidance to 25% growth from the previous 22.8% forecast, reflecting confidence in its expansion strategy in the Chinese market.

The company is simultaneously adjusting its international strategy by slowing direct-to-consumer store openings overseas to focus on peak season sales performance, while also planning to expand into the artist intellectual property segment.

Jefferies cited earnings upgrades and lower beta as key factors in its more bullish outlook, noting that market concerns about YH’s impact are now fully reflected in the stock price.

In other recent news, MINISO Group Holding Limited reported second-quarter earnings that exceeded analyst expectations. The company achieved revenue of RMB4.97 billion ($693.2 million), surpassing the consensus estimate of RMB4.86 billion and marking a 23.1% year-over-year increase. Adjusted earnings per American Depositary Share (ADS) were RMB2.24 ($0.31), which beat analyst projections of RMB1.75 by RMB0.49. This performance was attributed to strong revenue growth and improved same-store performance. BofA Securities responded to these results by upgrading MINISO’s stock from Underperform to Neutral and raising the price target from $16.50 to $24.00. The retailer’s non-IFRS net profit after tax grew by 11%, outperforming BofA’s estimate by 14% due to higher revenue and improved margins. Overall, the company’s second-quarter results showed acceleration compared to the first quarter, where revenue grew by 19% and profit declined by 5%. These developments highlight significant progress for the company in recent months.

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