Morgan Stanley: Raised the target price for J&T EXPRESS-W (01519) to HKD 12.3, maintaining an "Overweight" rating.

Morgan Stanley has released a research report maintaining an "Overweight" rating for J&T EXPRESS-W (01519), raising the target price from HKD 11.6 to HKD 12.3, which corresponds to a projected price-to-earnings ratio of about 20 times for 2026. The companys adjusted EBITDA forecasts for 2026 to 2028 have also been raised by 2.7%, 7.5%, and 8%, respectively. The bank believes that the companys current valuation is attractive, and its overseas expansion prospects are bright. The bank noted that J&T EXPRESS-W had strong performance in the first half of the year, with adjusted EBITDA increasing by 68% year-on-year, benefiting from a 71% year-on-year growth in the Southeast Asian market and a 120% year-on-year increase in other overseas markets. Management has raised the full-year guidance, and although the growth rate in the second half may normalize, the new guidance still implies that the Southeast Asian market will grow by 35% to 43%, and other overseas markets are expected to grow by 86% to 120%, performing better than peers focused on the Chinese market.