Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - JPMorgan downgraded Pop Mart International Group Ltd (HK:9992) from Overweight to Neutral on Monday, while reducing its price target to HK$300.00 from HK$400.00.
The downgrade comes after Pop Mart’s stock has surged 209% year-to-date and 466% over one year, significantly outperforming the Hang Seng Index, which rose 32% and 52% respectively during the same periods.
JPMorgan removed Pop Mart from its Positive Catalyst Watch, noting that four of seven anticipated catalysts have already materialized, including upbeat first-half 2025 results, a Uniqlo collaboration, index addition, and jewelry shop opening.
The remaining three catalysts—animation release, Labubu 4.0 launch, and introduction of interactive toys—now have "low visibility," according to the investment bank.
While JPMorgan believes Labubu’s brand equity and sales momentum remain solid despite declining Google search interest and resale prices, it views the current valuation as "priced for perfection" with an unfavorable risk/reward profile where "any small fundamental miss/negative media reports might drive underperformance."
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