Luckin Coffee’s Growth Prospects Generate a Buzz Amongst Analysts
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Luckin Coffee Inc., China’s second-biggest coffee chain, received two new bullish reviews from Keybanc and Needham, while Morgan Stanley added a note of caution.
Analysts who have weighed in so far like Luckin’s strategic store positioning, competitive coffee pricing compared to rival Starbucks Corp and expansion potential in the Chinese market. Morgan Stanley analyst Lillian Lou was more cautious, seeing limited gains in the near future on “relatively low earnings visibility,” and noting that valuation already “looks fair.”