Zhi Tong Cai Jing·2024-02-28 02:58Core Viewpoint - Li Ning's stock has experienced a decline following a downgrade from Goldman Sachs, which has reduced its investment rating from "Buy" to "Neutral" and lowered the target price from HKD 33 to HKD 22 [1] Group 1: Stock Performance - Li Ning's stock price fell over 4% during trading, with a current price of HKD 19.9, reflecting a decline of 3.4% [1] - The trading volume reached HKD 145 million [1] Group 2: Analyst Insights - Goldman Sachs noted that Li Ning's stock has risen approximately 30% since hitting a low in January, but faces potential risks to profit margins due to increased marketing expenses and operational deleveraging [1] - The firm indicated that Li Ning's sales growth outlook may be impacted by ongoing management and control over its agents [1] Group 3: Profit Forecast Adjustments - In light of a weak consumer environment, Goldman Sachs has adjusted Li Ning's earnings forecasts for fiscal years 2024 to 2026 downward by 6% to 11% [1] - This adjustment reflects a slowdown in sales growth prospects and increased costs associated with the Olympic year and brand-related investments [1]