Luckin Coffee (OTCMKTS:LKNCY) Shares Gap Up Following Strong Earnings

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $31.20, but opened at $32.90. Luckin Coffee shares last traded at $33.20, with a volume of 781,481 shares traded.

The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.06. Luckin Coffee had a return on equity of 24.91% and a net margin of 6.78%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. BNP Paribas Exane raised Luckin Coffee to an “outperform” rating and set a $48.00 price target for the company in a research note on Tuesday, September 15th. Zacks Research cut Luckin Coffee from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Two equities research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Luckin Coffee has an average rating of “Buy” and a consensus price target of $46.87.

Luckin Coffee Trading Up 6.4%

The stock’s fifty day moving average price is $33.68 and its 200 day moving average price is $33.47. The stock has a market cap of $9.52 billion, a P/E ratio of 19.76, a price-to-earnings-growth ratio of 0.46 and a beta of -0.34.

Luckin Coffee Company Profile

Luckin Coffee Inc is a China-based coffeehouse operator that sells freshly prepared coffee, tea-based beverages, fruit drinks and light food. Its menu includes espresso-based drinks, cold beverages, snacks and seasonal products, with orders placed primarily through its mobile application and fulfilled through company-operated locations and delivery or pickup services.

Founded in 2017, Luckin Coffee built its business around a technology-focused, convenience-oriented model that emphasizes mobile ordering, digitally managed stores and delivery.