Chagee (NASDAQ:CHA) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Chagee from “buy” to “strong-buy,” though broader analyst sentiment remains “Hold,” with a consensus price target of $13.82.
• Chagee shares were trading down 1.4% at $10.98, within a 12-month range of $8.98 to $17.66, and the company has a market capitalization of approximately $2.02 billion.
• The company reported quarterly EPS of $0.37, exceeding the $0.33 consensus estimate, on revenue of $502.59 million; analysts expect full-year EPS of $1.31.

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

Several other brokerages have also recently commented on CHA. Weiss Ratings cut Chagee from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, July 30th. The Goldman Sachs Group began coverage on Chagee in a report on Sunday, June 21st. They issued a "neutral" rating and a $13.60 price objective on the stock. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $13.82.

Chagee Trading Down 1.4%

CHA stock opened at $10.98 on Friday. Chagee has a 12-month low of $8.98 and a 12-month high of $17.66. The business's 50-day moving average is $11.25 and its 200 day moving average is $11.00. The stock has a market cap of $2.02 billion, a price-to-earnings ratio of 10.87 and a beta of 1.48.

Chagee (NASDAQ:CHA - Get Free Report) last announced its earnings results on Friday, August 28th. The company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.04. The business had revenue of $502.59 million during the quarter. Chagee had a return on equity of 16.43% and a net margin of 10.23%. As a group, equities analysts forecast that Chagee will post 1.31 EPS for the current fiscal year.

Hedge Funds Weigh In On Chagee

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

Chagee Company Profile

Chagee, also known as BaWangChaJi (霸王茶姬), is a Chinese tea beverage company that operates a chain of cafés and tea shops. Founded in 2017, the company focuses on freshly prepared drinks based on traditional Asian tea varieties, combining tea culture with modern café-style service and branding.

Its product range primarily includes tea-based beverages such as milk tea, pure tea and specialty tea lattes made with varieties including jasmine green tea, oolong tea and black tea. Chagee also offers selected seasonal and complementary beverages, with its menu and product development centered on brewed tea rather than the tapioca-focused drinks commonly associated with traditional bubble tea.

Chagee serves customers through a combination of company-operated and franchised locations.

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