UBS Adjusts XTEP INT'L Price Target Lower to HK$5.72, Reaffirms Buy Recommendation

Stock News07-20

UBS has released a research report adjusting its outlook for XTEP INT'L (01368). The bank noted that the company's second-quarter sales fell short of expectations, primarily due to weak demand, unfavorable weather conditions, and a strategic reduction in discounts aimed at enhancing the brand value of its Saucony line, coupled with weaker foot traffic in street-level stores. Consequently, UBS has lowered its target price for the stock from HK$6.6 to HK$5.72, while maintaining a "Buy" rating.

The report suggests that the company's previously stated revenue guidance for 2026 may be challenging to achieve. In light of a more subdued revenue growth outlook and lower mid-term sales growth projections, UBS has revised its net profit forecasts for the years 2026 through 2028 downward by 4% to 7%. The new forecasts are set at RMB 1.234 billion, RMB 1.435 billion, and RMB 1.554 billion, respectively.

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