Goldman Sachs sets a Neutral rating on Chagee Holdings, citing limited store expansion potential in China despite 17% upside.
Goldman Sachs initiated coverage of Chagee Holdings Limited (NASDAQ:CHA) on June 21, 2026, assigning a Neutral rating and a $13.60 price target. The target implies 17% upside from current levels but reflects concerns over constrained growth in China’s teahouse market.
Earlier in June, CLSA rated CHA a Hold with a $10 target, while Morgan Stanley raised its target to $15.50 from $14.50 in May, maintaining an Overweight rating. Morgan Stanley cited stronger Q1 results and higher revenue from company-owned stores as key drivers for revised earnings estimates.
Chagee operates teahouses across Asia and the U.S., focusing on premium tea-lattes. Analysts note its narrow product focus may limit adaptability to shifting consumer trends.