Morgan Stanley Remains a Buy on CSPC Pharmaceutical Group (CHJTF)
Morgan Stanley analyst Yolanda Hu maintained a Buy rating on CSPC Pharmaceutical Group (CHJTF – Research Report) yesterday and set a price target of HK$6.80.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
According to TipRanks, Hu is ranked #9102 out of 9552 analysts.
In addition to Morgan Stanley, CSPC Pharmaceutical Group also received a Buy from Nomura's Jialin Zhang in a report issued on May 29. However, yesterday, Macquarie maintained a Hold rating on CSPC Pharmaceutical Group (Other OTC: CHJTF).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Nvidia Stock (NVDA) Preserves Pack Leader Status Following Q1
Nvidia (NVDA) once again proved to the markets, after reporting its Q1 earnings, that it remains the undisputed leader powering the global AI revolution, driven by relentless demand for its chips, even amid ongoing geopolitical and trade headwinds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Beyond beating all key metrics (excluding one-off events) and offering guidance that resonated well with investors, Nvidia stock experienced a strong post-earnings surge, even if the momentum cooled slightly in the days that followed. That said, there's arguably still a missing spark needed to fully reignite the stock's momentum heading into 2025. However, considering the broader growth story, Nvidia continues to trade at a very attractive valuation—one that could deliver meaningful alpha over the long term. Short- to mid-term bumps, especially tied to macro risks in China, are worth monitoring but don't alter the core thesis. Given the company's strong execution and still-intact fundamentals, I continue to rate NVDA as a Buy. As I pointed out in a previous article, for Nvidia stock to perform well after its Q1 Fiscal 2026 results, it wouldn't be enough to simply beat estimates—it needed to crush them and deliver guidance that topped market expectations. And that's precisely what Nvidia did. The company reported revenue of $44 billion (as shown in the chart below), beating its own guidance of $43 billion—a massive 69% increase year-over-year. Gross margins, which had been a point of concern during the early stages of Blackwell's rollout, came in at 71.3% (excluding the H20 charge, a financial write-off tied to its China-specific H20 GPUs). That's also above the guided range of 70.6% to 71%. Even more impressive was the Q2 guidance. Nvidia is projecting $45 billion in revenue, with a margin of plus or minus 2%. At the high end, that's $45.9 billion—above the ~$45.5 billion consensus estimate leading into earnings day. Margins are expected to rise again, landing between 71.8% and 72.0%, with a margin of error of approximately 50 basis points. At the top of that range, it suggests another round of margin expansion, which is exactly what investors wanted to hear. The company continues to state that once Blackwell production is fully ramped, margins could move into the 70–80% range over the next few quarters. This stronger-than-expected performance, along with the recovery in margins, led to long-term EPS estimates getting bumped up by around 9% starting in FY2029. Revenue projections for those years were also revised higher by roughly 8%. Not surprisingly, Nvidia shares jumped more than 5% in after-hours trading following the earnings release, although the stock mostly leveled off in the sessions since. In my view, the muted post-earnings reaction is actually a positive sign—it shows the market didn't see enough red flags to justify a selloff in Nvidia stock. However, bears argue that even with revenue jumping nearly 70% year-over-year, signs of fatigue in the growth story are evident, with sequential growth of just 12% potentially indicating that Nvidia's explosive momentum is entering a more seasonal or plateauing phase. For a company priced for hypergrowth, this kind of quarter-over-quarter slowdown can be an early warning signal. And it's not just about the numbers—geopolitical and regulatory pressures are starting to have real consequences. The U.S. export restrictions on AI chips like the H20 led to a $4.5 billion write-down and forced Nvidia to walk away from an estimated $15 billion in potential sales to China. That's not just a short-term financial hit—it also opens the door for competitors like Huawei to gain ground, especially as they accelerate domestic chip development. Although analysts have raised long-term estimates following Q1, there remains a genuine possibility that Nvidia's global dominance could face challenges over time, particularly if policy pressures persist. When factoring in the impact of the H20 write-off, Q1 would have been the first quarter since the AI boom began in which Nvidia did not achieve sequential growth. And for a stock valued for perfection, even a modest slowdown can pose a valuation risk. To me, the bigger issue here is that this goes beyond Nvidia—it's about the strategic direction of U.S. tech leadership. As CEO, Jensen Huang has warned that if the U.S. continues down this restrictive path without a more balanced strategy, it may ultimately strengthen Huawei and erode America's edge in AI. That's the kind of long-term headwind that bears are likely to latch onto as the growth narrative gets more complicated. But setting the macro risks aside, Nvidia's bull case remains intact after Q1, especially when considering its growth. The company continues to stand out as a GARP (growth at a reasonable price) opportunity. Currently, Nvidia trades at 31.6x forward earnings, with a consensus growth rate of 29% CAGR over the next three to five years. This results in a PEG ratio of just 1x—virtually identical to Advanced Micro Devices (AMD), despite AMD's significantly slower growth outlook, and significantly lower than most of the other Magnificent 7 names. Of course, for that valuation to hold up, Nvidia's growth trajectory needs to remain clean and strong. But honestly, it's hard to think of another company with Nvidia's size and scale, this level of fundamental quality, and such massive exposure to secular tailwinds like AI, trading at such an attractive growth-adjusted valuation. Among the 40 analysts who've covered NVDA in the past three months, there's hardly any room for doubt: 35 rate the stock as a Buy, while only four suggest Hold. Not a single analyst rates NVDA stock as a Sell. Currently, NVDA's average stock price target is $173.57, implying a potential upside of 22% from the current share price. Setting aside one-off events, Nvidia left the bears with almost nothing to complain about—crushing its own guidance and delivering a Q2 forecast that dispels doubts about how quickly gross margins are recovering. While risks like evolving U.S. sanctions on China, Nvidia's ability to maintain its presence in that market, and rising local competition are worth keeping an eye on, they don't outweigh the current risk-reward of going long, especially given the company's strong growth trajectory. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
44 minutes ago
- CNBC
Economy is cooling but not rolling over, says Morgan Stanley's Michael Gapen
Michael Gapen, Morgan Stanley, and Phil Orlando, Federated Hermes, join 'Power Lunch' to discuss the latest jobs report and the overall economy.
Yahoo
2 hours ago
- Yahoo
Costco's (COST) Membership Model Powers Ouperformance as Headwinds Persist
Costco's (COST) fiscal Q3 2025 results show the retail giant remains largely insulated from broader economic pressures, thanks to the loyalty of its massive member base. Revenue grew 8% year-over-year, outpacing competitors such as Target (TGT) and Walmart (WMT), despite challenges including inflation and tariffs. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The key driver? It has 76.2 million paid members worldwide, delivering a consistent and reliable income. While the stock trades at a premium and macro headwinds persist across the retail sector, Costco's strong financial performance supports a continued bullish outlook. Last week, Costco surpassed earnings expectations, reporting $4.28 per share versus the anticipated $4.24. Along with an 8% rise in sales, net income jumped 13.1% year-over-year to $1.9 billion. This impressive net income growth is driven mainly by membership fees, which accounted for nearly two-thirds of Costco's net operating income. Importantly, this high-margin revenue stream allows Costco to operate with the profitability and stability often associated with software companies. The appeal of Costco memberships is clear, especially in times of higher inflation. By buying in bulk, members can theoretically save money, making the membership a valuable proposition. Even after raising membership fees in September 2024—for example, the 'Gold Star' membership increased from $60 to $65—renewal rates have stayed impressively above 90%. This recent price hike was the first in seven years and came at a sensitive time for consumers grappling with inflation, making those high renewal rates all the more remarkable. It shows members still see strong value despite the higher fees. For Costco, even a modest fee increase translates into hundreds of millions of dollars in additional annual operating income. Beyond the financials, memberships have a powerful psychological effect on shoppers. They encourage more frequent visits and foster customer loyalty, creating a flywheel effect where members pay for high-margin subscriptions while buying low-margin groceries in large volumes. Every business dreams of a recurring, predictable revenue stream—and for retailers like Costco, memberships are the perfect way to achieve it. Costco's resilience is nothing new. During the 2008–2009 financial crisis, while overall retail sales fell by 8%, warehouse clubs like Costco actually saw sales grow by 2%, with membership numbers holding steady. Fast forward to the COVID-19 pandemic, and Costco once again proved its strength, posting 16% revenue growth in fiscal 2021, largely driven by a surge in online sales. Its bulk-buying model became especially appealing as consumers rushed to stock up on essentials like toilet paper, underscoring how well Costco adapts to consumer behavior in times of economic stress. That's another thing about Costco. Retail just isn't the physical store anymore. It's digital, too. Costco's e-commerce segment is growing around 15%. Its mobile app is widely popular, and new technologies like 'scan-and-go' improve the shopping experience. Moreover, having your logo on millions of smartphones has other benefits like increased digital engagement, personalized recommendations, and dirt-cheap advertising. All of this helps explain why Costco (COST) trades at a premium valuation. With a Price-to-Earnings (P/E) ratio nearing 60—well above the sector median—the stock appears 'priced for perfection.' While such a valuation leaves little room for error, it's not unusual for high-quality companies to command premium multiples. If Costco continues to deliver strong performance, it could justify and even extend that valuation. However, there are risks. Tariffs and inflation remain headwinds, as highlighted by the $130 million LIFO charge in the recent quarter. These pressures could erode profitability and test investor confidence. Additionally, Costco faces stiff competition from other warehouse clubs like Sam's Club, which could impact growth and market share. In short, while Costco's fundamentals remain strong, its elevated valuation offers a limited margin of safety should conditions worsen. On Wall Street, Costco sports a consensus Moderate Buy rating based on 17 Buy, eight Hold, and zero Sell ratings in the past three months. COST's average price target of $1,093.64 implies a 4% upside potential over the next twelve months. Last week, Morgan Stanley analyst Simeon Gutman gave COST a Buy rating with a price target of $1,250. The analyst was impressed by Costco's member and sales growth. He also noted that 'Costco's ability to leverage its scale to counteract inflationary pressures and expand its market share against competitors is another key reason for the Buy rating. The company's business model, which focuses on consumable categories, provides a defensive advantage with limited tariff risk.' In summary, Costco's membership-driven model gives it a unique edge—especially during periods of economic uncertainty. Its recession-resistant qualities, combined with 8% sales growth, over 90% membership renewal rates despite recent price hikes, and rising net income, showcase strengths that traditional retailers struggle to match. These factors help justify Costco's premium valuation and sustained outperformance. That said, investors should tread with some caution. A lofty valuation means high expectations are already priced in, and any sign of a slowdown could rattle the market. But for now, Costco continues to fire on all cylinders, proving itself to be a dominant, resilient, and remarkably consistent retail force. Disclaimer & DisclosureReport an Issue
