Goldman Sachs lowers the target price for XTEP INT'L to 6.8 yuan and maintains a "Buy" rating

AASTOCKS
2025.10.20 05:51

Goldman Sachs released a report stating that XTEP INT'L (01368.HK) announced its operational performance for the third quarter of 2025, with core brand XTEP retail sales growth year-on-year meeting expectations, while Saucony brand grew over 20% year-on-year, slightly below expectations. The company reaffirmed its full-year performance guidance, with XTEP brand achieving positive growth and Saucony brand growth exceeding 30%, and net profit increasing by over 10%.

After a comprehensive assessment, Goldman Sachs slightly adjusted its net profit expectations for XTEP INT'L for the fiscal years 2025 to 2027 down by 2% to 3%, mainly reflecting a decline in the profit margin of the Bubugao brand and a slowdown in Saucony's growth. The target price was lowered from HKD 7.1 to HKD 6.8 to reflect the overall weak industry demand and short-term market sentiment under discount trends. The company's current expected price-to-earnings ratio for 2026 is 9 times, which is considered reasonable, maintaining a "Buy" rating

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