Midea Group, a leading Chinese home appliance manufacturer and distributor, experienced a remarkable surge in its stock price on Monday. The company's shares listed in Hong Kong spiked by nearly 8%, hitting a new high since their market debut less than a week ago.

The stock rally was driven by a bullish research report from Citi, which initiated coverage on Midea's Hong Kong shares with a "buy" rating and an optimistic target price of HK$90.08. This target implies a potential upside of over 30% from the current levels, underscoring Citi's confidence in the company's prospects.

In its report, Citi highlighted Midea and Haier as its top picks in the Chinese home appliance sector, citing improved earnings prospects and strong growth potential. The investment bank also maintained a "buy" rating on Midea's Shenzhen-listed shares and raised its target price to 81.89 yuan, reflecting a 20% upside potential.