DJ Bestore's Revenue May Be Pressured by Higher Marketing Expenses -- Market Talk
0345 GMT - Bestore Co.'s gross margin from its online channel is likely to improve this year, thanks to the company's efforts to expand its B2C platform, Daiwa Capital says. However, the confectionery company's revenue may be pressured due to higher marketing expenses for new products and relatively weak offline sales in 1Q, Daiwa notes. The investment bank lowers its forecast for Bestore's 2021-22 revenue estimates by 5%-6% and cuts EPS estimates by 2%-8%, citing higher selling, general and administrative expenses. It lowers the stock's target price to CNY85 from CNY87 and maintains a buy rating. Shares are 6.8% lower at CNY52.47. (justina.lee@wsj.com)
(END) Dow Jones Newswires
April 22, 2021 23:45 ET (03:45 GMT)
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