Morgan Stanley Raises its Price Target on ZTO Express (ZTO)

ZTO Express (Cayman) Inc. (NYSE:ZTO) is one of the 10 Best Asian Stocks with Huge Upside Potential.

On May 20, 2026, Morgan Stanley raised the firm’s price target on ZTO Express (Cayman) Inc. (NYSE:ZTO) to $30.10 from $28.50 and maintained an Overweight rating on the shares. Morgan Stanley said it was raising forecasts for the third time in six months following the company’s Q1 results, citing market share gains and better unit profitability as factors that could support ZTO’s re-rating despite slower industry volume growth and rising fuel costs.

Meanwhile, BofA lowered the firm’s price target on ZTO Express (ZTO) to $25.60 from $27 and maintained a Neutral rating on the shares. BofA said the lower target multiple reflects a “new overhang” tied to a potential stake sale by Alibaba (BABA) following the termination of the 2018 investor agreement among ZTO, its founders, and Alibaba. The firm said ZTO has not yet provided guidance on how the potential stake disposal will be carried out, while noting that an “undemanding valuation” and expected share buybacks may support the shares.

Morgan Stanley Raises its Price Target on ZTO Express (ZTO)

On May 19, 2026, ZTO Express (Cayman) Inc. (NYSE:ZTO) reported Q1 adjusted EPS of RMB2.95, compared to the consensus estimate of RMB3.07. Revenue totaled RMB13.282B, above the consensus estimate of RMB12.8B. Founder, Chairman, and CEO Meisong Lai said ZTO remained focused on service quality, customer satisfaction, operating cost efficiencies, and network pricing policy fairness and transparency. Lai also said parcel volume reached 9.7B, up 13.2%, or 7.4 points above the industry average, mainly due to strong key account growth.

ZTO Express (Cayman) Inc. (NYSE:ZTO) provides express delivery and other value-added logistics services in the People’s Republic of China.

While we acknowledge the risk and potential of ZTO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZTO and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1