ZTO Express (Cayman) (NYSE:ZTO) Downgraded by JPMorgan Chase & Co. to Neutral

Key Points

• JPMorgan downgraded ZTO Express from “overweight” to “neutral” and set a $22 price target, implying approximately 4.89% upside from the reported current price.
• Despite the downgrade, analysts maintain a consensus “Moderate Buy” rating with an average target price of $26.05; Morgan Stanley remains overweight with a $30.10 target.
• ZTO’s latest quarterly results exceeded expectations on earnings, with EPS of $0.56 versus the $0.50 consensus, while revenue rose 23% year over year to $2.14 billion, slightly below estimates.

ZTO Express (Cayman) (NYSE:ZTO - Get Free Report) was downgraded by stock analysts at JPMorgan Chase & Co. from an "overweight" rating to a "neutral" rating in a report issued on Thursday, Marketbeat Ratings reports. They presently have a $22.00 target price on the transportation company's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 4.89% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Morgan Stanley restated an "overweight" rating and issued a $30.10 price target on shares of ZTO Express (Cayman) in a research report on Wednesday, May 20th. Weiss Ratings cut shares of ZTO Express (Cayman) from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday. Finally, Zacks Research downgraded shares of ZTO Express (Cayman) from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, ZTO Express (Cayman) presently has a consensus rating of "Moderate Buy" and a consensus target price of $26.05.

ZTO Express (Cayman) Price Performance

ZTO Express (Cayman) stock opened at $20.98 on Thursday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.67 and a current ratio of 1.67. ZTO Express has a one year low of $17.86 and a one year high of $26.20. The company has a market cap of $11.69 billion, a P/E ratio of 11.28, a price-to-earnings-growth ratio of 0.82 and a beta of -0.24. The business has a fifty day moving average of $23.02 and a two-hundred day moving average of $23.67.

ZTO Express (Cayman) (NYSE:ZTO - Get Free Report) last announced its quarterly earnings results on Tuesday, August 18th. The transportation company reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.06. ZTO Express (Cayman) had a net margin of 19.03% and a return on equity of 15.90%. The business had revenue of $2.14 billion during the quarter, compared to the consensus estimate of $2.15 billion. The business's quarterly revenue was up 23.0% compared to the same quarter last year. As a group, analysts predict that ZTO Express will post 1.9 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd acquired a new stake in ZTO Express (Cayman) during the fourth quarter worth about $25,000. Leonteq Securities AG acquired a new stake in ZTO Express (Cayman) during the 4th quarter worth approximately $30,000. Atlas Capital Advisors Inc. purchased a new position in ZTO Express (Cayman) in the fourth quarter valued at approximately $35,000. Smartleaf Asset Management LLC lifted its position in ZTO Express (Cayman) by 61.4% during the second quarter. Smartleaf Asset Management LLC now owns 2,021 shares of the transportation company's stock valued at $36,000 after buying an additional 769 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in ZTO Express (Cayman) by 156.2% during the second quarter. EverSource Wealth Advisors LLC now owns 3,489 shares of the transportation company's stock worth $62,000 after buying an additional 2,127 shares during the period. Institutional investors and hedge funds own 41.65% of the company's stock.

ZTO Express (Cayman) Company Profile

ZTO Express (Cayman) Inc is one of China's leading express delivery companies, specializing in both domestic and cross-border parcel logistics. The company operates a technology-enabled network that connects shippers, independent pickup and delivery stations, regional sorting hubs and end customers. ZTO's service portfolio includes standard express, heavy-weight parcel delivery, time-definite shipments and e-commerce logistics solutions tailored for online retailers and marketplaces.

Founded in 2002 and headquartered in Shanghai, ZTO has grown rapidly by leveraging a franchise-style operating model that engages a broad network of independent contractors.

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