Jefferies analyst Thomas Chong has maintained their bullish stance on ZTO stock, giving a Buy rating on May 16.
Thomas Chong has given his Buy rating due to a combination of factors including ZTO Express’s solid financial performance and strategic business decisions. ZTO’s revenues and non-GAAP earnings exceeded market expectations, with a notable emphasis on profitability. The company successfully balanced quality, volume, and earnings, while increasing its volume contribution from retail orders. This indicates a strong business model capable of sustaining growth and delivering shareholder value.
Further, ZTO maintained its full-year parcel volume target, reflecting confidence in its operational capabilities amidst industry growth projections of 15-20% YoY. The company’s adjusted net income also showed a significant increase, surpassing consensus estimates. Additionally, strategic shifts towards service quality and the cleaning up of loss-making orders demonstrate ZTO’s focus on sustainable and healthy growth, further supporting the rationale behind the Buy rating.
According to TipRanks, Chong is a 4-star analyst with an average return of 6.0% and a 54.97% success rate. Chong covers the Communication Services sector, focusing on stocks such as Tencent Holdings Limited, Baidu, and NetEase.
In another report released on May 16, Bank of America Securities also reiterated a Buy rating on the stock with a $25.20 price target.
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ZTO Express (ZTO) Company Description:
ZTO Express (Cayman) Inc. is a China-based express delivery services company. The firm provides domestic and international express delivery as well as other value-added logistics services.
