Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA) Given Average Rating of "Hold" by Brokerages

Key Points

• Broker consensus on Chagee is “Hold”: Of seven analysts, four rate the stock a hold, two recommend buying, and one recommends selling. The average 12-month price target is $13.82, compared with a recent price of $12.51.
• Recent analyst views remain mixed, ranging from Morgan Stanley’s “overweight” rating with a $15.50 target to CLSA’s $10.00 target and Weiss Ratings’ sell rating.
• Chagee reported quarterly EPS of $0.37, exceeding the $0.33 consensus estimate, on revenue of $502.59 million. Several institutional investors also recently initiated or expanded their positions, including Fosun International, which significantly increased its stake.

Shares of Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report) have earned an average recommendation of "Hold" from the seven ratings firms that are currently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $13.82.

Several research firms recently weighed in on CHA. Morgan Stanley restated an "overweight" rating and set a $15.50 target price on shares of Chagee in a report on Friday, May 29th. Weiss Ratings downgraded Chagee from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, July 30th. The Goldman Sachs Group began coverage on Chagee in a research note on Sunday, June 21st. They set a "neutral" rating and a $13.60 price objective on the stock. Zacks Research raised Chagee from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. Finally, CLSA initiated coverage on Chagee in a research note on Sunday, May 31st. They issued a "hold" rating and a $10.00 target price for the company.

Institutional Trading of Chagee

Several large investors have recently bought and sold shares of CHA. Fosun International Ltd raised its stake in shares of Chagee by 19,295.0% during the fourth quarter. Fosun International Ltd now owns 7,447,088 shares of the company's stock valued at $86,610,000 after purchasing an additional 7,408,691 shares during the period. Renaissance Technologies LLC purchased a new position in shares of Chagee in the first quarter valued at $2,511,000. Empowered Funds LLC acquired a new stake in Chagee during the 1st quarter valued at $1,211,000. Bank of America Corp DE grew its holdings in Chagee by 5,266.8% during the 1st quarter. Bank of America Corp DE now owns 50,502 shares of the company's stock valued at $470,000 after purchasing an additional 49,561 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new stake in Chagee during the 1st quarter worth $427,000.

Chagee Stock Performance

NASDAQ CHA opened at $12.51 on Tuesday. The firm has a market capitalization of $2.30 billion, a price-to-earnings ratio of 12.39 and a beta of 1.60. Chagee has a one year low of $8.98 and a one year high of $18.46. The company's 50 day moving average price is $11.14 and its 200 day moving average price is $10.92.

Chagee (NASDAQ:CHA - Get Free Report) last released its quarterly earnings data on Friday, August 28th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.04. Chagee had a net margin of 10.23% and a return on equity of 16.43%. The company had revenue of $502.59 million during the quarter. Sell-side analysts forecast that Chagee will post 1.29 EPS for the current fiscal year.

About Chagee

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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