MINISO Group Holding (MNSO) shares were down more than 6% in recent Tuesday trading following a downgrade from Jefferies on Monday to hold from buy.
Jefferies said the downgrade was based on investment risks related to MINISO's recently announced acquisition of a 29.4% stake in Yonghui Superstores for about 6.3 billion Chinese renminbi ($895.9 million).
According to Bloomberg News, Jefferies analysts Anne Ling and Boya Zhen said the acquisition "might not be the best use of cash," noting that investors could prefer share buybacks or higher dividends.
Price: 12.85, Change: -0.87, Percent Change: -6.34
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