Morgan Stanley: POP MART's strategy focuses on sustainable growth, with sales growth turning more positive next year
Morgan Stanley released a research report stating that it has turned more positive on POP MART's sales growth through 2026, as the firm believes the company has not fully unleashed all growth momentum by 2025. Its ongoing tactical adjustments highlight a clear focus on business quality and sustainable growth. The rating is "Overweight," with a target price of HKD 382. Morgan Stanley noted that Labubu's pre-orders drove better-than-expected performance in the third quarter of 2025, while POP MART has resumed its spot sales model to better manage product life cycles and promote repeat customer growth. Management expects strong sales in the fourth quarter due to more holidays and a strong product reserve. Offline sales in the U.S. continue to grow, benefiting from a more diversified IP portfolio and high store efficiency. More high-traffic flagship stores are expected to open from 2026 to 2027. U.S. online sales may be temporarily affected by a reduction in pre-sale activities. The firm believes that the launch of new products from top IPs should quickly drive accelerated growth
According to Zhitong Finance APP, Morgan Stanley released a research report stating that it has turned more positive on the sales growth of POP MART (09992) through 2026, as the bank believes the company has not fully unleashed all growth momentum by 2025. Its ongoing tactical adjustments highlight a clear focus on business quality and sustainable growth. The rating is "Overweight," with a target price of HKD 382.
Morgan Stanley stated that Labubu pre-orders drove better-than-expected performance in the third quarter of 2025, while POP MART has resumed its spot sales model to better manage product life cycles and promote repeat customer growth. Management expects strong sales in the fourth quarter due to more festivals and a strong product reserve.
Offline sales in the United States continue to grow, benefiting from a more diversified IP portfolio and high store efficiency. It is expected that more high-traffic flagship stores will be opened in 2026-27. Online sales in the United States may be temporarily affected by a reduction in pre-sale activities. The bank believes that the launch of new products from top IPs should quickly drive accelerated growth
