Goldman Sachs initiated coverage on Luckin Coffee (LKNCY) with a Buy rating. The investment bank set a price target of $49 per share. This valuation implies a potential 61% upside from the current price.
Analysts identified a significant expansion opportunity within mainland China. Goldman Sachs suggests a network of 55,000 stores is an attainable goal for the company.
The firm also highlighted potential for further margin expansion. The report notes the possibility for increased shareholder returns as the company scales.