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ubs downgrades smoor stock citing overvaluation and cautious earnings outlook

UBS has downgraded Smoore International Holdings from Neutral to Sell, raising the price target to HK$10.72 due to concerns over stock overvaluation and a conservative earnings outlook linked to British American Tobacco's new heat-not-burn products. Despite a 35% surge in Smoore's stock following BAT's product announcement, UBS projects earnings to be 119% lower than consensus estimates, citing potential catalysts such as disappointing 2024 results and a slower rollout of BAT's product as key factors influencing their revised rating.

ubs downgrades smoor stock citing overvaluation and cautious earnings outlook

UBS has downgraded Smoore International Holdings from Neutral to Sell, raising the price target to HK$10.72 due to concerns over stock overvaluation and a conservative earnings outlook related to British American Tobacco's new heat-not-burn products. Despite a 35% surge in Smoore's stock following BAT's product announcement, UBS projects earnings to be 119% lower than consensus estimates, citing potential catalysts such as disappointing 2024 results and a slower rollout of BAT's product as factors influencing the revised rating.
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