CMB International Securities analyst Walter Woo maintained a Buy rating on Carote Ltd (2549 – Research Report) today and set a price target of HK$6.44.
Walter Woo has given his Buy rating due to a combination of factors that highlight Carote Ltd’s potential for long-term growth despite current challenges. The company has set an ambitious target of over 30% sales growth for FY25, which is particularly notable given the macroeconomic uncertainties such as tariffs and potential economic slowdowns. This target reflects management’s confidence in their strategic initiatives, including significant expansion in the US market through both online and offline channels, and plans to introduce a new brand to diversify their product offerings.
Additionally, Carote Ltd is focusing on expanding its presence in key international markets such as China, Western Europe, and Japan, where they anticipate substantial sales growth. Although there are concerns about profit margins due to external economic factors, the company’s proactive approach in addressing these challenges and its market share gain story support the Buy rating. The management’s strategy to develop both online and offline channels and the potential for new product lines further bolster the company’s growth prospects.