[ET Net News Agency, 19 December 2019] Morgan Stanley lowered its target price for
Goodbaby International (01086) to HK$1.7 from HK$2.8 and maintained its "equal-weight"
rating.
The research house thinks Goodbaby is well-positioned in the juvenile product industry,
with its diversified brand and product portfolio, and outstanding manufacturing and R&D
capabilities.
Morgan believes it should benefit from the premiumization trend in major economies.
Cybex should continue its strong momentum, supported by its strengthened supply chain and
continued category expansion. However, the company may still face some challenges in China
and the US market. For China, the declining number of newborns, as well as emerging online
competition, will likely add to operational pressure, especially for the wholesale
channel. For the US, the end of the Baby R Us channel makes distribution more concentrated
among the leading retailers, reducing Goodbaby's bargaining power. (KL)