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Investing.com - Goldman Sachs downgraded Ningbo Tuopu Group Co Ltd (SS:601689) from Buy to Neutral while adjusting its price target to RMB68.00 from RMB67.00.
The downgrade follows Ningbo Tuopu’s second-quarter 2025 results, which fell below Goldman Sachs expectations with revenue and net profit coming in 14% and 13% below estimates, respectively.
The disappointing performance was primarily attributed to a 13% year-over-year decline in global sales volume from Tuopu’s key customer, Tesla.
Goldman Sachs has cut Ningbo Tuopu’s second-half 2025 to 2027 net income estimates by 4% to 13% to reflect an anticipated continued Tesla sales decline of 9% year-over-year in the second half of 2025.
The investment bank’s revised price target of RMB68 is based on a 20X 2030 price-to-earnings ratio discounted back to mid-2026 at a 10% cost of equity, implying a 2% downside potential.
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