ZTO Express (NYSE:ZTO) is one of the best emerging markets stocks to buy right now. On February 9, Macquarie analyst Ellie Jiang upgraded ZTO Express (NYSE:ZTO) to an Outperform from a Neutral and raised the price target to $26.60 from $18.40.
The analyst upgraded the stock, impressed by the company’s signal of preliminary fourth-quarter volume growth of 9%, which topped the industry’s 5%. In addition, the company indicated revenue growth of 8% to 19% and a gross profit margin of 23% to 28%. The analyst expects the company to capture shifting customer pricing preferences owing to its high-quality yet affordable value proposition.
The research firm expects the company’s total parcel volume growth to be 8%, topping the industry’s 7%. It also expects the company to benefit from an improving average selling price, driven by industry pricing recovery.
Earlier, on February 4, ZTO Express announced the pricing of $1.5 billion in convertible senior notes due 2031. The company plans to use up to $1 billion in net proceeds from the offering to fund share repurchases of Class A ordinary shares. The remaining $500 million is to fund concurrent share repurchases and for general corporate purposes.
ZTO Express is a leading Chinese express delivery company that functions as a major, high-volume, low-cost logistics provider for e-commerce, delivering billions of parcels annually through a nationwide network.
READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.
This article is originally published at Insider Monkey.
