ZTO Express price target raised to $28.60 from $20.50 at Macquarie

Macquarie raised the firm’s price target on ZTO Express to $28.60 from $20.50 and keeps a Neutral rating on the shares. The firm sees “more upside from here” for the China internet sector, saying multiples still trade at only half of Q1 2023 levels “with materially better fundamentals.” Aligning the valuation year to 2025 given China’s stimulative policy steps, along with “prudent corporate strategies, enhances sector earnings visibility,” the analyst tells investors in a research note. Macquarie says local services, e-commerce and travel stand out as key “quality at discount” picks.