Morgan Stanley raised the firm's price target on Chagee to $15.50 from $14.50 and keeps an Overweight rating on the shares. The firm raised its earnings estimates for Chagee for 2027 and 2028 to factor in the better-than-expected Q1 results, adding that the changes are mainly driven by higher sales forecasts, with a higher proportion of revenue from company-owned stores. The firm added that it largely maintains its opex ratio assumption in 2026 but projects an increase in the ratio in 2027-2028 with investment in marketing and new products.
