Discover Why Gree Inc. (3632:JP) Faces Stock Downgrade and Price Target Revision to RMB40.00 | Latest Financial News
In a recent development, a leading financial services firm has downgraded Gree Inc. (3632:JP) (OTC: GREZF) from Buy to Hold, along with a significant downward revision of the price target to RMB40.00 from the previous RMB72.00. This shift comes on the heels of Gree's second-quarter financial results, which revealed a forecasted decline in air conditioner (AC) volume growth for the upcoming fiscal year, with an anticipated decrease of 5-10% year-over-year.
The analyst from the financial services firm pointed out several challenges facing Gree, including struggling distributors with receivables from the construction channel, intense price competition in the air conditioner market, and high channel inventory levels. These factors have had a noticeable impact on Gree's balance sheet for the second quarter of 2024, leading the firm to expect significant headwinds in terms of sales, operational expenses, and working capital management.
Given the revised outlook, investors are advised to adopt a more cautious approach towards Gree's stock, with a recommendation to hold existing shares rather than making additional purchases at this time. Stay informed with the latest financial news and make well-informed investment decisions.
Analysis:
- Gree Inc. (3632:JP) downgraded from Buy to Hold with a revised price target of RMB40.00.
- Financial services firm cites challenges in air conditioner market and distributor financials.
- Anticipated decline in AC volume growth for upcoming fiscal year.
- Investors advised to hold existing shares amid market uncertainties.