Citigroup includes RLX Technology on its list of potential upside catalysts (RLX)


Citigroup includes RLX Technology on its list of potential upside catalysts (RLX)

Shares of RLX Technology (NYSE:RLX) are trading up more than 3% in Monday’s premarket session after Citigroup placed the stock on a 90-day Catalyst Watch due to expectations of accelerated growth in the company’s international markets starting in the first quarter of this year. Citigroup analyst Lydia Ling noted that with the slow recovery of China’s e-vapor business, it is beneficial that more than 60% of RLX’s business will come from outside of China by 2024. Ling also pointed out the company’s product competitiveness and the consolidation of its overseas businesses by its Hong Kong-based subsidiary Relx Inc. by the end of 2025, which will contribute to the company’s global market share.

Ling believes that RLX is well-positioned to lead in China’s e-vapor industry due to its strong product development and distribution capabilities, despite increasing competition. Citigroup rates RLX Technology as a Buy/High Risk with a price target of $2.76, representing a 48% premium over Friday’s closing price. The Catalyst Watch expires on June 16.

On the other hand, Wall Street analysts consider RLX Technology (RLX) to be a Strong Buy, while Seeking Alpha’s Quant Rating views RLX (RLX) as a Sell.

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