J.P. Morgan downgrades Chinese internet stocks on geopolitical risks

Mar. 14, 2022 3:38 PM ETKSHTY, MPNGF, NTES, TCOM, DADA, MOMO, HUYA, OCFT, DOYU, ZH, BZUNBy: Khyathi Dalal, SA News Editor25 Comments

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  • J.P. Morgan in its latest equity research report downgraded 28 coverage stocks in China Internet to Neutral or Underweight; Kuaishou (OTCPK:KSHTY) is the only stock with Overweight rating.
  • The analysis is based on lack of valuation support in the near term, China's geopolitical risks, macro recovery and internet regulation risk.
  • Meituan (OTCPK:MPNGF) -16% was downgraded to underweight from overweight and the stock is trading close to its 52-week low levels of $13.50.
  • Meanwhile, NetEase (NASDAQ:NTES) -9.7% was lowered to underweight from overweight and the stock is trading close to its 52-week low levels of $68.62.
  • Trip.com (NASDAQ:TCOM) -12.5% was downgraded to Neutral from Overweight; 52-week low stands at $14.29 while 52-week high is at $45.19.
  • Dada Nexus (NASDAQ:DADA) -28% and Hello (NASDAQ:MOMO) -29% were downgraded to neutral from overweight; in Q4, DADA beat its EPS and revenue estimates.
  • Huya (NYSE:HUYA) -7.5%, OneConnect (NYSE:OCFT) -5.2% and Douyu (NASDAQ:DOYU) -12.3% were downgraded to underweight from neutral; all the stocks are trading close to their 52-week low levels.
  • Zhihu (NYSE:ZH) -28% and Baozun (NASDAQ:BZUN) -12% were lowered to underweight from overweight.
  • Earlier, Alibaba, Baidu lead Chinese tech stocks south as downgrades say it's time to sell.

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