0332 GMT - Mixue Group's valuation appears capped on weakening visibility, Daiwa analysts say in a research note. Although the bubble tea maker's same-store sales growth has been resilient, Daiwa sees risks in the high market expectations for its overseas expansion plan and its coffee brand Lucky Cup. Mixue opened its first U.S. store in December, but is unlikely to scale up rapidly given the differences in store unit economics in the U.S. compared with Asia, they say. Meanwhile, Mixue's mass-market positioning limits its flexibility in production innovation and pricing versus peers with higher average selling prices, they say. Daiwa downgrades Mixue's rating to hold from outperform and lowers its target price to HK$427.00 from HK$535.00. Shares are last at HK$409.00.(sherry.qin@wsj.com)
(END) Dow Jones Newswires
January 04, 2026 22:32 ET (03:32 GMT)
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