Chagee Holdings Rating Raised to Neutral, Price Target Cut to $11.50
JPMorgan upgraded Chagee Holdings to Neutral from Underweight and cut its price target to $11.50 from $12.40 after shares plunged over 60% from their $28 IPO. The change follows five straight quarters of same-store sales declines and reflects improved risk/reward expectations for planned 2026 turnaround initiatives.
1. JPMorgan Upgrade and Price Target Revision
On February 13, 2026, JPMorgan analyst Jessie Xu upgraded Chagee Holdings from Underweight to Neutral and reduced the price target to $11.50 from $12.40, noting that the stock has fallen more than 60% from its $28 IPO.
2. Sales Slump and Pivot Prospects
Chagee has experienced five consecutive quarters of same-store sales declines, prompting JPMorgan to highlight an ‘approaching pivot point’ and improved risk/reward as new store initiatives and product launches roll out in 2026.
3. Jefferies Coverage and Peer Comparison
In January 2026, Jefferies initiated coverage with a Hold rating and a $14 price target, while expressing a preference for competitors Guming and Mixue based on stronger near-term growth visibility.
4. Business Model and Operations
Chagee Holdings owns, operates and franchises CHAGEE teahouses across China and internationally, selling tea beverages, raw materials, packaging, equipment and related supplies as part of its vertically integrated strategy.