Citi Research rated POP MART as a Buy due to its IP-centric diversification strategy, which is expected to enhance the company's ability to withstand cyclical risks associated with intellectual property (IP) and rejuvenate demand. The report highlighted a recent uptrend in app downloads, particularly in China and the US, attributed to the successful release of the new Skullpanda x My Little Pony series, indicating strong consumer interest. Looking ahead to 2026, Citi Research anticipates that advancements in IP diversification, product innovation, and monetization will drive growth. The broker also noted that investor confidence is likely to strengthen with the launch of new blockbuster IPs and the popularity of non-LABUBU IPs in overseas markets. Consequently, Citi set a target price of $415 for POP MART, based on a projected 2026 PE ratio of 28x, reflecting the company's rapid growth and leading position in the market.
