J. P. Morgan raises Yatsen PT on multi-brand strategy

Yatsen Holding

30/12/2022 13:04

** J. P. Morgan raises PT on China-based cosmetics
manufacturer Yatsen Holding Ltd  YSG.N  to $1.11 from $0.93;
maintains "neutral" rating 
    ** New PT represents a downside of ~19% to stock's last
close 
    ** Brokerage cites YSG's multi-brand strategy to reach wider
consumer groups and have higher margins 
    ** Still, expects low sales growth in near-term due to
increasing competition in the color cosmetics space 
    ** Says YSG also has a low contribution in the skincare
business, which has higher margins 
    ** Break even to take time, with an estimate of 2025 -
brokerage  
    ** As of last close, stock down ~36% YTD
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))