Morgan Stanley: Raises POP MART target price to HKD 350, expects holiday season to boost fourth-quarter sales

JP Morgan released a research report stating that POP MART's sales in the third quarter increased by 245% year-on-year to 250%, far exceeding the bank's expectation of 140% and the market's expectation of 180%, with a quarter-on-quarter growth of 64% expected for the third quarter. Morgan Stanley predicts that POP MART's sales in the fourth quarter will increase by 184% year-on-year, primarily driven by increased production capacity and a series of upcoming traditional holidays such as Halloween, Thanksgiving, Black Friday, and Christmas. Consequently, it has raised its profit forecast for 2025 to 2027 by 9% to 17%. The current forecast predicts that this year's sales and profits will increase by 209% and 340% year-on-year, respectively, with the target price raised from HKD 320 to HKD 350, maintaining a rating of "Overweight."