STOCKS | Citi Cuts MiniMax Target Price to HK$533 and Adds 30-Day Downside Watch

Citi cut its target price for MINIMAX-W (00100.HK) to HK$533 from HK$1,330 while maintaining a “buy” rating and adding the stock to a 30-day short-term downside watch. According to Jin10, Citi said the recent share-price pullback may reflect pricing controversy and a muted market response to the M3 model released in early June. Citi said negative sentiment, uncertainty around user retention, and uncertainty around monetization strategy could weigh on the stock in the short term. The bank said the share price could see further volatility as the lock-up period for the first batch of shares expires on July 9, even though major strategic investors including the founder, Alibaba, and miHoYo have voluntarily committed to a 12-month lock-up. Citi added that if the upcoming release of Hailuo 3 helps the company regain positive feedback, it could help ease the related adverse factors.