Pop Mart: What's Driving the Downgrade?
- Valuation Concerns: JPMorgan believes Pop Mart’s current valuation is no longer attractive, especially after a sharp intraday drop of over 8%.
- Target Price Cut: The price target was slashed by 25% to HKD 300, signaling reduced short-term upside.
- IP Saturation Worries: Investors are jittery about the sustainability of Labubu’s popularity. Secondary market prices have dipped, but JPMorgan attributes this to overproduction rather than fading demand.
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