Nomura: Li Ning may need a new catalyst to achieve a revaluation of its stock valuation

Nomura analysts stated in a research report that Li Ning may need new catalysts to achieve a revaluation of its stock. Nomura believes that Li Ning’s sales growth trajectory is clearer than its peers, thanks to the potential recovery of its sports and leisure business and the increased brand awareness brought by sponsoring the Chinese Olympic Committee. However, Nomura’s analysts noted that these drivers are already largely reflected in the stock price. They pointed out that the competition in China’s running market is also very fierce. Nomura maintains a neutral rating on the stock with a target price of HKD 23.4. The latest trading price of the stock is HKD 19.76.