Major Bank Ratings | Deutsche Bank: Raises ZKH target price to $4.5 and maintains "Buy" rating, expects revenue to return to growth and achieve quarterly profitability in Q4 2025
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Glonghui, February 6th|Deutsche Bank has released its Q4 2025 earnings preview report for ZKH (NYSE: ZKH), raising the target price to $4.50 and maintaining a "Buy" rating. Deutsche Bank expects ZKH to achieve solid progress in Q4 2025, with year-on-year revenue growth likely to recover to mid-single digits, and anticipates a single-quarter profit with continued improvement in adjusted net margin. Looking ahead to 2026, Deutsche Bank believes the impact of the company's earlier business adjustments will have been largely absorbed, and revenue is expected to return to a steady growth trajectory driven by ARPU improvement and customer base expansion. On the profit side, the company will benefit from a higher proportion of self-owned brands, scale effects, and improved operational efficiency, with the potential to achieve full-year profitability. Regarding overseas business, Deutsche Bank states that ZKH will focus on serving the overseas expansion needs of Chinese enterprises, a strategy that helps enhance business certainty, and expects the overseas segment to reach breakeven in 2026. With increased confidence in the company's recovery path, Deutsche Bank has raised its target price to $4.5 and maintained a "Buy" rating. Deutsche Bank expects the company to release its Q4 2025 and full-year results in mid-March.
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