Chagee (NASDAQ:CHA) Cut to “Strong Sell” at Zacks Research

Zacks Research downgraded shares of Chagee (NASDAQ:CHA) from a hold rating to a strong sell rating in a research report released on Tuesday morning,Zacks.com reports.

A number of other brokerages have also commented on CHA. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Chagee in a report on Friday, March 27th. Wall Street Zen raised shares of Chagee from a “sell” rating to a “hold” rating in a research report on Sunday, December 14th. Jefferies Financial Group began coverage on shares of Chagee in a research note on Wednesday, January 7th. They issued a “hold” rating and a $14.00 price target on the stock. Finally, JPMorgan Chase & Co. upgraded shares of Chagee from an “underweight” rating to a “neutral” rating and dropped their price objective for the stock from $12.40 to $11.50 in a research note on Friday, February 13th. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Chagee presently has a consensus rating of “Hold” and an average price target of $30.31.

Chagee Trading Up 10.2%

Shares of NASDAQ CHA opened at $10.09 on Tuesday. The firm has a market cap of $1.85 billion and a P/E ratio of 11.21. The business’s 50 day moving average is $10.75 and its 200-day moving average is $13.32. Chagee has a 1-year low of $8.98 and a 1-year high of $41.80.

Institutional Trading of Chagee

Several large investors have recently modified their holdings of the stock. JPMorgan Chase & Co. acquired a new position in Chagee in the second quarter valued at about $26,000. Quantbot Technologies LP acquired a new stake in Chagee during the third quarter worth about $34,000. Caitong International Asset Management Co. Ltd increased its holdings in Chagee by 3,141.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,885 shares of the company’s stock valued at $34,000 after buying an additional 2,796 shares during the period. Federated Hermes Inc. acquired a new position in shares of Chagee in the 2nd quarter valued at approximately $172,000. Finally, China Universal Asset Management Co. Ltd. acquired a new position in shares of Chagee in the 2nd quarter valued at approximately $204,000.

Key Chagee News

Here are the key news stories impacting Chagee this week:

• Positive Sentiment: JPMorgan upgraded CHA from “neutral” to “overweight” and raised its price target to $16 (from $11.50), citing a stronger bull case; that upgrade is the primary driver of today’s upward price move. Read More.
• Neutral Sentiment: Company commentary and press coverage highlight a strategic push into the U.S. market and plans to recalibrate after a tough 2025, which could support longer-term growth but won’t immediately erase recent weak results. Read More.
• Neutral Sentiment: Investors can read the full Q4 2025 earnings call transcript for management’s detail on store mix, pricing, and U.S. plans—useful for assessing execution risk versus JPMorgan’s bullish view. Read More.
• Negative Sentiment: Zacks Research downgraded CHA from “hold” to “strong sell,” adding immediate selling pressure and highlighting continued skepticism among some sell-side analysts. Read More.
• Negative Sentiment: Independent analysis (Seeking Alpha) notes a major Q4 2025 earnings miss—EPS fell ~87% YoY and missed consensus by a wide margin—and management’s FY26 guidance calls for essentially flat revenue and profit, underscoring short-term operational headwinds. Read More.

About Chagee

Our Mission With every cup of our tea, we aspire to foster a global connection of people and cultures. Our Vision To modernize the tea-drinking experience through technology and innovation. Our Core Values “Customer First” is the foundational philosophy of how we make decisions and run our business. “Caring for Partners” is the core value that defines how we interact with consumers, franchise partners, suppliers, and employees. “Quality, Health, and Convenience” is the guiding principle of how we make our products.