Analysts Seen Good Growth Prospect: Luckin Coffee Inc. (LK)

Luckin Coffee Inc.’s stock (NASDAQ:LK) has been rated as Buy by Needham. This latest rating was contained in a recent research note published by the firm on February 04, 2020 and has set a $40 price target for the stock. Some experts on Wall Street have also posted a report on Luckin Coffee Inc. (LK) stock.

Morgan Stanley rated the stock as a Equal-Weight in a research noted published on January 28, 2020. Morgan Stanley rated the stock as a Equal-Weight in a research note published on January 27, 2020.

As it stands, a total of 7 analysts are covering LK stock, with 6 of them rating it as a Buy while 0 of them rating it as Overweight. 1 analysts meanwhile advised investors to Hold, 0 rated it as Underweight while the 0 rated it as a Sell. A look at the overall ratings means that Luckin Coffee Inc. (LK) stock has an average rating of Buy.

Luckin Coffee Inc. (LK) which is currently valued at 9.64 billion, with the company publishing its last earnings report on 11/13/2019, for the recent quarter of 2019. In that quarter, the company recorded a revenue of 313.83 million, which was lower than the forecast of 328.34 million made by some analysts.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, LK price has surged by 7.51%. A look at its price performance over the past three months sees the stock go up by 99.95%, while it has gain 85.67% over the past six months.

Let us now look at some of its likely support and resistance level. Recent research on Luckin Coffee Inc. (LK) has seen its stock trading -26.14% below its three-month high price. A look at the other side also sees stock trading +82.80% above its three-month low. A wider look sees LK trading -26.14% below its 52-week high and 176.81% above from its 52-week low price.

Shareholders of the company sometimes like to find out how their investments are growing. Luckin Coffee Inc. (LK) has so far given an ROE of -170.80%. When the ROE is low, it means that the company isn’t generating enough profits. The Return on Assets (ROA) ratio meanwhile is an indication of how profitable a company is relative to the total asset it owns. Luckin Coffee Inc. (LK)’s ROA at the moment stands at -66.70%. Any company that is managing its assets better will have a higher return while one that manages assets poorly would result in low returns.

Luckin Coffee Inc. (LK) has a return on investment (ROI) of 105.80%. The higher the ROI percentage, the higher the profit exceeds the costs, thus analysts consider such investments as an overall gain. A negative ROI, however, means that the cost is higher than the profits, a scenario analysts consider as a net loss.

Let us now take a look at Luckin Coffee Inc. (LK)’s trading volatility. Its 7-day volatility is around 6.55%, while it has a monthly volatility of 9.48%. LK has an ATR (Average True Range) of 3.70. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of LK moved down by -$0.8 during the normal trading session on Thursday to trade at $37.95. The Luckin Coffee Inc. (LK) stock has a trading volume of 16.3 million shares, which is high, compared to its average daily volume of 15.87M shares.