Major Bank Rating | Macquarie: Raises ZTO Express Target Price to $31.4, Maintains “Outperform” Rating

Glonghui, May 22｜Macquarie issued a report stating that ZTO Express showed strong business volume and revenue performance in the first quarter, but its profit margin was slightly below expectations as the company prioritized business volume over pricing. With increased contributions from returns and retail parcels, as well as integration of automation and AI technologies, there has been an expansion in market share, average selling price, and unit economics. The bank maintains its "Outperform" rating on ZTO Express and raises its US stock target price by 3% to $31.4. With the establishment of a price floor in the industry, it is believed that ZTO, relying on its competitive advantage in customer service, has the potential to capture a larger share of business volume.