Zacks Investment Research Upgrades ZTO Express (Cayman) (ZTO) to “Hold”

ZTO Express (Cayman) (NYSE:ZTO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.

According to Zacks, “ZTO Express reported better-than-expected earnings per share in the third quarter of 2018. Moreover, the top and bottom lines improved year over year. Increase in parcel volume on the back of rapid growth of China’s e-commerce industry and increased demand for express delivery services looks promising. We also remain positive on the Alibaba-led consortium’s decision to invest in ZTO Express. The company's consistent efforts to reward shareholders through share buybacks bodes well. However, shares of ZTO Express have shed more than 19% of its value over the last three months. High operating expenses are limiting bottom-line growth. With the company constantly making investments to expand its portfolio, costs are likely to increase, thereby weighing on the bottom line in the coming quarters. Also, the Chinese express delivery market remains highly competitive due to the presence of big players like SF Express and STO Express.”

Other equities research analysts also recently issued research reports about the stock. TheStreet raised shares of ZTO Express (Cayman) from a “c” rating to a “b-” rating in a research report on Thursday, November 1st. JPMorgan Chase & Co. reduced their price target on shares of ZTO Express (Cayman) from $23.50 to $23.00 and set an “overweight” rating for the company in a research report on Friday, August 10th. Finally, ValuEngine downgraded shares of ZTO Express (Cayman) from a “buy” rating to a “hold” rating in a research report on Thursday, September 6th. One analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $22.50.

ZTO stock opened at $16.29 on Wednesday. ZTO Express has a 52-week low of $14.51 and a 52-week high of $22.67. The company has a market cap of $8.16 billion, a PE ratio of 23.61 and a beta of 0.28.

ZTO Express (Cayman) (NYSE:ZTO) last released its earnings results on Wednesday, November 14th. The transportation company reported $0.20 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.18 by $0.02. ZTO Express (Cayman) had a net margin of 26.44% and a return on equity of 14.90%. The firm had revenue of $4.24 billion during the quarter, compared to analyst estimates of $4.28 billion. During the same period last year, the business earned $1.00 earnings per share. The business’s revenue was up 34.7% on a year-over-year basis. As a group, sell-side analysts predict that ZTO Express will post 0.77 EPS for the current fiscal year.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Truvestments Capital LLC bought a new stake in shares of ZTO Express (Cayman) during the third quarter valued at approximately $114,000. Intellectus Partners LLC bought a new stake in shares of ZTO Express (Cayman) during the third quarter valued at approximately $116,000. Financial Counselors Inc. bought a new stake in shares of ZTO Express (Cayman) during the third quarter valued at approximately $169,000. Virtu Financial LLC bought a new stake in shares of ZTO Express (Cayman) during the third quarter valued at approximately $196,000. Finally, FDx Advisors Inc. bought a new stake in shares of ZTO Express (Cayman) during the third quarter valued at approximately $202,000. 32.69% of the stock is owned by institutional investors.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc provides express delivery and other value-added logistics services in the People's Republic of China. The company offers delivery services for e-commerce and traditional merchants, and other express service users. As of December 31, 2017, it operated a fleet of approximately 3,600 self-owned trucks.

See Also: Buyback

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