JP Morgan: upgrades POP MART (09992) rating to "neutral" with a target price raised to 320 Hong Kong dollars.

J.P. Morgan released a research report stating that they have raised their investment rating on POP MART (09992) to "neutral" and increased the target price from HK$300 to HK$320. After adjusting the earnings forecast for 2025 to 2027 by 5% to 7%, J.P. Morgan predicts that POP MART's sales and adjusted profits will increase by 165% and 276% respectively this year, and by 28% and 29% respectively next year. The bank predicts that POP MART is currently trading at a forward P/E ratio of 20 times for next year, and believes the valuation is attractive. Future catalysts include (1) the release of third-quarter operating data at the end of October; (2) strong sales during Halloween and Christmas; (3) the expected release of the "Labubu & Friends" animation in December; and (4) the anticipated release of Labubu 4.0 in March to April next year.