Investment Analysts Bullish on U.S.-Listed Chinese Stocks
Investment analysts have upgraded at least three U.S.-listed Chinese stocks to buy so far this month, reflecting a positive sentiment towards these companies. As many Chinese companies are reporting earnings for the last three months of 2023 and the full year, analysts are finding reasons to be optimistic about the growth prospects of these companies.
One of the Chinese stocks that analysts are turning bullish on is Tencent Music Entertainment. Citi upgraded the stock to buy with a price target of $13 a share, citing better-than-expected fourth quarter results and a strong outlook for the company’s subscription music business. Another company that received an upgrade is Kingsoft Cloud, with JPMorgan elevating its rating to overweight based on expectations of achieving break even for the first time in 2024. Vnet Group also saw an upgrade from BofA, with analysts predicting revenue growth from a local government contract and demand from short video companies.
In addition to these specific stock upgrades, analysts are also finding more reasons to be incrementally optimistic about other Chinese stocks. For example, JPMorgan upgraded shares of Bilibili, a video streaming and gaming company, to neutral with a price target of $11. Deutsche Bank analysts also initiated coverage of China’s auto sector with five buy-rated stocks, including Li Auto which is listed in the U.S.
Overall, the positive outlook from investment analysts reflects a growing confidence in the growth potential of U.S.-listed Chinese stocks. As these companies continue to report strong earnings and show promising growth opportunities, investors may find it worthwhile to consider adding them to their portfolios.
With reporting by Michael Bloom.
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