Citi Upgrades Quantasing Group Ltd (QSG) to Buy

Citi analyst Alice Cai upgraded Quantasing Group Ltd (NASDAQ: QSG) from Neutral to Buy with a price target of $9.52 (from $6.10).

The analyst comments: "We hosted an investor meeting, and management’s latest update reinforces our conviction: WAKUKU production remains <50% of demand even after 5-6x mold expansion, validating explosive market reception. Management targets RMB1bn+ collectibles revenue by FY27, positioning QSG among China’s leading IP players. WAKUKU’s success validates designer toys as new growth engine. We revise forecasts to capture this transformation: revenue -2%/+5%/+25% and reported NP +1%/+19%/+25% for FY25/26/27E. Our model now embeds the designer toy segment contributing RMB60m in FY25, growing to RMB550m in FY26, and surging to RMB1.2bn in FY27. Our valuation framework moves from +2.5 STD to 5x STD basis, yielding 4.7x 12-month rolling fwd P/S target multiple – a conservative ~60% discount to designer toy peers trading at 11.7x 12-month forward P/S, reflecting early-stage execution risk. This re-rating catalyst plus explosive growth trajectory support our upgrade."

For an analyst ratings summary and ratings history on Quantasing Group Ltd click here. For more ratings news on Quantasing Group Ltd click here.

Shares of Quantasing Group Ltd closed at $6.95 yesterday.

You May Also Be Interested In

• BofA Securities Upgrades Moderna (MRNA) to Neutral
• FTX executives avoid fines in CFTC settlement over exchange collapse
• Morgan Stanley Upgrades Suncor Energy (SU) to Overweight