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Investing.com - Jefferies has downgraded Shanghai M&G Stationery (603899:CH) from Buy to Hold, while significantly reducing its price target to RMB32.00 from RMB48.00.
The downgrade follows what Jefferies described as "disappointing" first-half 2025 results for the Chinese stationery company, with performance dragged down by persistent pressure on its traditional core business.
Jefferies analyst Boya Zhen expressed concerns about the recovery trajectory for M&G’s Colipu and Jiumu business segments, noting low visibility for improvement in these areas.
The investment firm also pointed out that despite being an early entrant in the pop toy business, M&G is now "too late to catch up" with competitors in this sector.
The downgrade reflects Jefferies’ view that M&G lacks "clear fundamental growth drivers," while management credibility issues further impair the firm’s outlook for the company.
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