Pop Mart earnings may fuel rally as shares trail price target

[BEIJING] Pop Mart’s first-half earnings and outlook commentary may provide a fresh reason for investors to build positions in the shares after a months-long consolidation.

The toymaker’s nearly 5 per cent stock gain on Monday (Aug 18) helped it break out of a narrow range and hit a record high. Still, Pop Mart trades at about 90 per cent of its sell-side price target, leaving room for upside as the company delivers results on Tuesday.

Analysts have largely kept their price targets flat over the past month, likely waiting on the results before altering projections. The Labubu maker’s first-half revenue is set to triple, with chief executive officer Wang Ning saying that he expects overseas sales to exceed those in China this year.

Pop Mart’s stock has rallied more than 1,000 per cent since the company unveiled upbeat results in March 2024. The shares are currently trading below their average price-to-target ratio held since then. BLOOMBERG