---
title: "Morgan Stanley lowers DAMAI ENT target price to 0.9 yuan, rating \"Overweight\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283431734.md"
description: "Morgan Stanley has lowered the target price for DAMAI ENT from HKD 1.20 to HKD 0.90, with a rating of \"Overweight.\" The firm pointed out that DAMAI ENT's stock price has fallen about 40% since February, mainly due to the decline in IP business valuation and concerns over the film business. It is expected that the company's revenue will remain flat in the second half of the year, with a net profit growth of 26%. At the same time, revenue forecasts for 2026 to 2028 have been cut by 4% to 9%, and net profit forecasts have been reduced by 10% to 17%. Despite facing challenges, Morgan Stanley believes the market's reaction is overly pessimistic, and future performance is expected to improve"
datetime: "2026-04-21T02:37:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283431734.md)
  - [en](https://longbridge.com/en/news/283431734.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283431734.md)
---

# Morgan Stanley lowers DAMAI ENT target price to 0.9 yuan, rating "Overweight"

Morgan Stanley published a research report, lowering the target price for DAMAI ENT (01060.HK) from HKD 1.20 to HKD 0.90, corresponding to a forecasted price-to-earnings ratio of 21 times for 2027, with a rating of "Overweight."

The bank stated that DAMAI ENT's stock price has fallen about 40% since its peak in February, reflecting a decline in IP business valuation, concerns over the film business, a slowdown in revenue from Sanrio-related IP, and profit pressure from overseas expansion investments. The bank expects the company's revenue in the second half of the year to remain roughly flat, with normalized net profit growth of 26%, and has lowered its revenue forecasts for 2026 to 2028 by 4% to 9%, with normalized net profit forecasts reduced by 10% to 17%.

The bank believes that the market reaction is overly pessimistic; although DAMAI ENT's film business has seen a decline in revenue, reduced content investment and a focus on profitability will drive performance improvement. The valuation is attractive

### Related Stocks

- [01060.HK](https://longbridge.com/en/quote/01060.HK.md)
- [MS.US](https://longbridge.com/en/quote/MS.US.md)
- [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md)
- [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md)
- [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md)
- [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md)
- [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md)
- [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md)
- [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md)
- [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md)
- [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md)

## Related News & Research

- [Citi Keeps Their Buy Rating on Damai Entertainment Holdings Limited (1060)](https://longbridge.com/en/news/286013626.md)
- [From Pop Concerts To Plush Toys, Damai Broadens Ecosystem](https://longbridge.com/en/news/286580476.md)
- [Assessing International Paper (IP) Shares After A Steep Pullback And Undervaluation Debate](https://longbridge.com/en/news/286679803.md)
- [Assessing Damai Entertainment Holdings (SEHK:1060) Valuation After MAISEAT’s Sold Out Concert Ticketing Win](https://longbridge.com/en/news/279497885.md)
- [Pop Mart expands IP empire with debut dessert store in Hebei province](https://longbridge.com/en/news/286178772.md)