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Investing.com - BofA Securities lowered its price target on Miniso (NYSE:MNSO) to $21.70 from $24.00 on Monday, while maintaining a Neutral rating on the stock following the company’s mixed third-quarter 2025 results. According to InvestingPro data, analysts have set price targets ranging from $20.20 to $32.20, suggesting potential upside from the current price of $19.57.
The retailer reported revenue growth of 28.2%, reaching the higher end of its 26-28% guidance, with same-store sales growth turning positive at mid-single digits during the quarter. This performance exceeds Miniso’s trailing twelve-month revenue growth of 23.4%. Despite the strong top-line performance, Miniso’s adjusted operating profit increased only 15% year-over-year.
The company’s adjusted operating profit margin came in at 17.6%, representing a 2.1 percentage point decline compared to the same period last year, which BofA indicated was below expectations for a meaningful narrowing in margin contraction. InvestingPro data shows Miniso maintains a healthy gross profit margin of 45.0% over the last twelve months, though profitability metrics remain under pressure.
BofA trimmed its 2025 and 2026 non-IFRS earnings per share estimates by 6% each, citing lower margins as the primary reason for the 10% reduction in price target. The firm noted that despite the fourth quarter being Miniso’s peak season, it forecasts revenue growth to remain similar to the third quarter. Analysts still predict Miniso will be profitable this year, with EPS forecasts for fiscal 2025 at $1.33.
The stock has corrected 26% since its last quarterly results and currently trades at 15 times 2025 price-to-earnings, approximately 10% below its three-year average, but BofA maintained its Neutral stance due to low earnings visibility in 2026 amid major store revamps in China and slower-than-expected overseas margin recovery. InvestingPro data indicates Miniso’s current P/E ratio is 19.97, with the stock down 7.43% in the past week and 15.47% year-to-date. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value assessment. For deeper insights and more ProTips on Miniso’s financial health, explore the comprehensive Pro Research Report available for this prominent player in the Broadline Retail industry.
In other recent news, Miniso has announced its intention to spin off its pop-culture collectibles unit, Top Toy, and list it separately on the Hong Kong stock exchange. The company has already submitted a listing application for Top Toy. UBS, JPMorgan, and Citic Securities are set to act as joint sponsors for this listing. These developments mark a strategic move by Miniso to potentially unlock value in its collectibles unit. The decision to list Top Toy separately could provide it with more focused growth opportunities in the market. This move comes amidst a backdrop of increasing interest in pop-culture collectibles. The Hong Kong listing is expected to offer Top Toy a platform to expand its investor base.
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