TSX gains after CPI shows US inflation rose 3%
Investing.com - UBS initiated coverage on MotoMotion China Corp (301061:CH) with a Buy rating and a price target of RMB110.00 on Tuesday.
The Chinese recliner sofa manufacturer primarily focuses on the US market, where UBS expects furniture demand to improve amid the Federal Reserve’s interest rate cut cycle.
UBS projects MotoMotion to continue gaining market share due to its mid- to high-end market positioning, innovative products, and aggressive channel expansion strategies.
The company’s substantial overseas production capacity, which covers more than 90% of its US sales, positions it to manage tariff impacts effectively, according to UBS.
Despite MotoMotion’s share price nearly doubling year-to-date, UBS forecasts 2024-27 revenue and net profit compound annual growth rates of 23% and 18% respectively, with the price target implying 27x 2026 estimated price-to-earnings ratio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.