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Investing.com - JPMorgan has downgraded Ningbo Tuopu Group Co Ltd (601689:CH) from Overweight to Underweight, while reducing its price target to RMB40.00 from RMB56.00.
The Chinese auto parts manufacturer has experienced significant stock volatility in 2025, initially rallying 56% through February before dropping 42% to a year-to-date low in mid-July, followed by a 35% rebound since then.
JPMorgan’s downgrade follows Tuopu’s second-quarter 2025 results, which missed both JPMorgan and consensus estimates, prompting the firm to cut its 2025/26 earnings forecasts by 20-26%, positioning its outlook 18-23% below market consensus.
This marks JPMorgan’s second rating change for Tuopu this year, having previously downgraded it to Neutral in October 2024 due to tariff concerns and slower Tesla orders, before upgrading to Overweight after seeing sequential improvement from key customers Tesla and Seres following first-quarter results.
Within China’s auto parts sector, JPMorgan now expresses preference for alternative companies including Fuyao Glass and Minth over Ningbo Tuopu.
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