UBS: Upgrades XTEP INT'L rating to "Buy" and raises target price to HKD 7.6
UBS released a research report stating that it has upgraded the rating of XTEP INT'L from "Neutral" to "Buy," raising the target price from HKD 6.4 to HKD 7.6, and has increased the net profit forecast for 2025 to 2027 by 1% to 9%. It expects the profit contribution from its brands Saucony and Merrell to significantly increase from 5% in 2024 to 16% in 2027. Additionally, the firm is optimistic about Anta Sports, expecting the profit contribution from vertical brands to rise from 9% in 2024 to 31% in 2027, maintaining a "Buy" rating and a target price of HKD 127. Chinese sportswear stocks have averaged a decline of about 20% since August this year, reflecting market concerns over weak sales in the third quarter and a growing consumer preference for specialized sports segments and vertical brands. The firm estimates that the compound annual growth rate of the outdoor products market from 2025 to 2027 will reach 16%, significantly higher than the 5% for the overall sports apparel market, believing that categories such as tennis and high-end running products will have strong potential
According to the Zhitong Finance APP, UBS has released a research report stating that it has upgraded the rating of XTEP INT'L (01368) from "Neutral" to "Buy," raising the target price from HKD 6.4 to HKD 7.6. It has also increased the net profit forecast for 2025 to 2027 by 1% to 9%, expecting the profit contribution from its brands Saucony and Merrell to significantly rise from 5% in 2024 to 16% in 2027. Additionally, the firm is optimistic about Anta Sports (02020), anticipating that the profit contribution from vertical brands could increase from 9% in 2024 to 31% in 2027, maintaining a "Buy" rating and a target price of HKD 127.
Chinese sportswear stocks have seen an average decline of about 20% since August this year, reflecting market concerns over weak sales in the third quarter and a growing consumer preference for specialized sports segments and vertical brands. The firm estimates that the compound annual growth rate of the outdoor products market from 2025 to 2027 will reach 16%, significantly higher than the 5% for the overall sports apparel market, believing that categories such as tennis and high-end running products will have strong potential
