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Investment analysts have upgraded three U.S.-listed Chinese stocks to buy this month, as many Chinese companies report earnings for the last quarter of 2023 and the full year. Despite skepticism about China meeting its growth target without further stimulus, the country has reported better-than-expected economic data. Tencent Music Entertainment was upgraded by Citi with a price target of $13, while Kingsoft Cloud was upgraded by JPMorgan with a price target of $4.20. Vnet Group was upgraded by BofA with a price target of $2.70, as analysts expect growth in revenue from a local government contract and demand from short video companies.

JPMorgan also recently upgraded shares of video streaming and gaming company Bilibili to neutral, with a price target of $11. The analysts believe Bilibili can achieve double-digit revenue growth with new game releases and have achieved positive operating cashflow in the past two quarters. Deutsche Bank analysts initiated coverage of China’s auto sector, with five buy-rated stocks including Great Wall Motor, BYD, Seres, Li Auto, and JMC. Li Auto is the only one listed in the U.S., suggesting potential opportunities for investors in the sector.

Despite concerns about China’s ability to meet its growth target, some positive economic data and company performance have led analysts to upgrade certain Chinese stocks to buy. Tencent Music Entertainment, Kingsoft Cloud, and Vnet Group have all received upgrades this month, with analysts citing various reasons for their bullish views. With Chinese companies reporting earnings and new developments in various sectors, there could be potential opportunities for investors looking to capitalize on the positive outlooks for these stocks.

BofA upgraded Vnet Group to buy with a price target of $2.70, expecting revenue growth from a local government contract and demand from short video companies. JPMorgan upgraded Bilibili to neutral with a price target of $11, based on expectations of double-digit revenue growth and positive cashflow. Deutsche Bank initiated coverage of China’s auto sector, identifying five buy-rated stocks including Li Auto, which is listed in the U.S. These upgrades and initiations suggest growing confidence in the potential for these Chinese companies to perform well in the coming months.

The optimistic views on these Chinese stocks come at a time when analysts are closely monitoring economic data and company performance in the country. While there are concerns about China’s ability to meet its growth target, recent positive data and developments have led to upgrades for certain stocks. With analysts finding more reasons to be optimistic about Chinese companies, there could be opportunities for investors to capitalize on the potential growth and performance of these stocks in the near future.

Overall, the upgrades and initiations of coverage on Chinese stocks by investment analysts indicate a growing confidence in the potential for these companies to deliver strong performance. Tencent Music Entertainment, Kingsoft Cloud, Vnet Group, Bilibili, and Li Auto are among the stocks that have received positive assessments from analysts, based on various factors such as earnings reports, new contracts, and revenue growth opportunities. These bullish views suggest that there may be opportunities for investors to consider these Chinese stocks as part of their investment portfolios.

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