Goldman Sachs: Initiates SHEIN-W (00625.HK) with "Buy" rating, target price HK$62, bullish on potential earnings recovery in 2027

Zhito Finance APP has learned that Goldman Sachs issued a research report stating that it has initiated coverage on SHEIN-W (00625.HK) with a "Buy" rating and a 12-month target price of HK$62, based on an 18x forecast P/E for 2027 and an ex-cash P/E of 8.7x, benchmarked against global fashion and apparel peers. The bank believes that SHEIN has a strong cash balance, free cash flow generation capability, potential earnings recovery in 2027, upside room in market share, and attractive valuation. The currently pressured valuation reflects market expectations that the company will continue to burn cash, and its US$18 billion market capitalization is equivalent to only 118% and 104% of its forecast cash balances for the first half of 2026 and 2027, respectively. The bank believes market expectations are overly pessimistic.