Shares of MINISO Group Holding Limited (MNSO) soared over 6% in pre-market trading on Thursday, October 4th, 2024. The stock price rally came after Citigroup initiated coverage on the Chinese discount retailer with an "Overweight" rating and a price target of $26.80.
According to Citigroup analyst Spencer Nevins, MINISO's business model of offering "affordable, high-quality lifestyle products" positions the company well to capture growth opportunities in China's rapidly expanding middle-class consumer market. Nevins cited MINISO's strong brand recognition, extensive store network, and efficient supply chain as key competitive advantages.
The bullish initiation from Citigroup appears to be a key driver behind MINISO's pre-market surge, as investors reacted positively to the Wall Street firm's favorable outlook and lofty price target. The stock closed the previous trading session at $19.90, implying a potential upside of over 34% from Citigroup's $26.80 target price.
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