Chagee (NASDAQ:CHA) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded Chagee from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with a $13.82 average price target.
• Chagee reported quarterly EPS of $0.37, beating estimates of $0.33, on revenue of $502.59 million; analysts expect full-year EPS of $1.31.
• The stock opened at $11.41, with a $2.09 billion market capitalization and a 12-month trading range of $8.98 to $17.66. Several institutional investors, including Bank of America and Virtu Financial, recently increased their positions.

Chagee (NASDAQ:CHA - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Other equities research analysts have also issued research reports about the stock. Zacks Research raised shares of Chagee from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. Weiss Ratings lowered shares of Chagee from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, July 30th. CLSA assumed coverage on shares of Chagee in a research report on Sunday, May 31st. They set a "hold" rating and a $10.00 price target for the company. The Goldman Sachs Group started coverage on Chagee in a report on Sunday, June 21st. They issued a "neutral" rating and a $13.60 price target for the company. Finally, Morgan Stanley reissued an "overweight" rating and issued a $15.50 price objective on shares of Chagee in a research report on Friday, May 29th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $13.82.

Chagee Price Performance

Chagee stock opened at $11.41 on Friday. The company has a market cap of $2.09 billion, a price-to-earnings ratio of 11.30 and a beta of 1.60. Chagee has a 12 month low of $8.98 and a 12 month high of $17.66. The stock's 50-day moving average is $11.24 and its 200-day moving average is $10.98.

Chagee (NASDAQ:CHA - Get Free Report) last posted its earnings results on Friday, August 28th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.04. The firm had revenue of $502.59 million during the quarter. Chagee had a net margin of 10.23% and a return on equity of 16.43%. Research analysts anticipate that Chagee will post 1.31 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd increased its stake in Chagee by 5,007.9% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,546 shares of the company's stock worth $53,000 after buying an additional 4,457 shares during the period. Y Intercept Hong Kong Ltd acquired a new position in Chagee in the 1st quarter worth $427,000. Bank of America Corp DE boosted its position in Chagee by 5,266.8% in the 1st quarter. Bank of America Corp DE now owns 50,502 shares of the company's stock valued at $470,000 after buying an additional 49,561 shares during the last quarter. Virtu Financial LLC grew its stake in shares of Chagee by 355.9% during the fourth quarter. Virtu Financial LLC now owns 54,304 shares of the company's stock valued at $632,000 after acquiring an additional 42,393 shares in the last quarter. Finally, Empowered Funds LLC acquired a new stake in shares of Chagee during the first quarter valued at about $1,211,000.

Chagee Company Profile

Chagee Holding Limited operates the CHAGEE beverage brand, which specializes in freshly prepared tea drinks inspired by traditional Chinese tea culture. Its menu includes tea-based milk beverages, fruit tea and other drinks made with tea leaves, milk and related ingredients. The company positions CHAGEE as a premium, modern tea brand serving customers through branded retail locations.

Founded in 2017, Chagee has expanded its store network primarily through mainland China, while also serving customers in Southeast Asia.

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