On Friday, Jefferies issued a downgrade for Supor (SHE:002032) stock, moving its recommendation from Buy to Hold. The firm also adjusted the price target to RMB50.80, a decrease from the previous RMB61.00. The downgrade followed Supor's earnings call which took place on August 30.
The Jefferies analyst commended Supor's management for their efforts to enhance the company's efficiency. Nonetheless, concerns were raised regarding the broader economic environment, particularly the impact of a consumption downgrade and government stimulus on the demand for Supor's products.
Jefferies has revised its sales forecasts for Supor in line with these concerns. This revision reflects the firm's cautious stance on the future demand for Supor's offerings in the current economic climate.
The new price target of RMB50.80 suggests Jefferies' analysts have recalibrated their stock performance expectations. The adjustment considers the potential challenges Supor may face in the near term.
Supor's recent earnings call and Jefferies' subsequent rating change highlight the company's current position within a shifting economic landscape. The update from Jefferies reflects the evolving market dynamics and potential headwinds for companies like Supor.
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