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Investing.com - UBS upgraded Laopu Gold (HK:6181) from Neutral to Buy and raised its price target to HK$980.00 from HK$850.00.
The stock has corrected 26% since its July peak, underperforming jewelry peers’ median gain of 6% and lagging behind gold’s price appreciation since September, according to UBS.
UBS expects Laopu Gold to implement its third product price increase of the year in the fourth quarter, potentially alleviating gross profit margin pressure in the second half of 2025 and first half of 2026.
The firm notes that with gold reaching new highs, consumers anticipate price increases from Laopu, which could support sales during the peak seasons of the fourth quarter and first quarter, both before and after any potential price adjustments.
UBS identified several potential catalysts for the stock, including announcements on price adjustments, new store openings, expansion of existing locations, and new product launches.
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