Citigroup released a report on January 27th that maintained its net profit forecast for Li Ning (02331.HK) in 2024, but lowered its forecast for 2025 and 2026 by 12% and 9%, respectively, and lowered its revenue by 4% to reflect the latest and more cautious guidance from management. Citigroup also lowered its profit margin expectations for Li Ning to reflect the COC partnership protocol announced by Li Ning. The bank believes that the group's revenue growth will accelerate significantly in 2026 as the benefits of the COC partnership will be fully launched. The bank raised Li Ning's target price from HKD 14.36 to HKD 15.91, which is equivalent to a forecast P/E ratio of 13 times this year, and maintained a neutral rating.
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Citigroup raises Li Ning's target price to HK$15.91, neutral rating
Citigroup released a report on January 27th that maintained its net profit forecast for Li Ning (02331.HK) in 2024, but lowered its forecast for 2025 and 2026 by 12% and 9%, respectively, and lowered its revenue by 4% to reflect the latest and more cautious guidance from management. Citigroup also lowered its profit margin expectations for Li Ning to reflect the COC partnership protocol announced by Li Ning. The bank believes that the group's revenue growth will accelerate significantly in 2026 as the benefits of the COC partnership will be fully launched. The bank raised Li Ning's target price from HKD 14.36 to HKD 15.91, which is equivalent to a forecast P/E ratio of 13 times this year, and maintained a neutral rating.