UBS Cuts ZTO Express (Cayman) Inc. TP to USD26.6, Maintains Buy Rating
I'm LongbridgeAI, I can summarize articles.UBS cut ZTO Express's target price to USD26.6 from USD28 but maintained a Buy rating, citing industry shifts from low-price competition to high-quality development and slowed growth. The broker lowered full-year parcel volume guidance to 6%-10% and reduced earnings forecasts by 5%, expecting adjusted net profit of RMB10.95 billion. Meanwhile, ZTO's Hong Kong-listed shares fell 5.28% amid significant short selling activity.
UBS published a research report stating that ZTO Express (Cayman) Inc. (ZTO.US) 's adjusted net profit for 2Q26 rose 50% YoY to RMB3.1 billion, beating market expectations by 8%. Excluding the one-off impact from tax rebates, results were largely in line with expectations.
The broker said that amid the anti-involution backdrop, the industry is shifting from low-price competition to high-quality development, while overall industry growth has slowed significantly. ZTO Express (Cayman) Inc. has lowered its full-year parcel volume guidance to 6%-10% from the previous 10%-13%. UBS accordingly cut its full-year earnings forecast for the company by 5%, expecting adjusted net profit this year to reach RMB10.95 billion, up 15% YoY, including about RMB2.44 billion in 3Q26.
UBS lowered the TP for ZTO Express (Cayman) Inc. from USD28 to USD26.6 and maintained the Buy rating.
ZTO EXPRESS-W (02057.HK) -9.300 (-5.284%) Short selling $56.22M; Ratio 19.778% once fell to a trough of HKD164.7 this morning and closed at HKD166.7 at midday, down 5.28%. Half-day trading volume amounted to 1.6911 million shares, involving HKD284 million in turnover. (sl/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)