CHA Stock Analysis: Buy, Sell, or Hold?

CHA - Chagee Holdings Limited American Depositary Shares

Retail-Eating & Drinking Places
$9.54
-0.43 (-4.31%) ▼
5d: -3.05%
30d: -12.64%
90d: -6.84%
BUY
MODERATE Confidence
Analysis Updated: May 22, 2026 12:00 AM ET
Earnings: May 29, 2026 5d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: CHA shows positive signals but monitor for confirmation. Market pricing in 0.9% decline. Moderate conviction.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$18.36
Based on 13.6% avg growth
INTRINSIC VALUE TODAY
$11.40
16.3% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 0.8x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: CHA is currently trading at $9.54, which is considered oversold relative to its 30-day fair value range of $10.10 to $10.91. The stock's valuation (Forward PE: 0.8) is in line with its historical norms (0.8). Remarkably, the market is currently pricing in an annual earnings decline of 0.9% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, CHA is in a strong downtrend. The price is currently testing key support at $9.41. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 4.3% recently.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $16.81 (+76.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position OVERSOLD
Historical Trading Range $10.10 - $10.91
Company Quality Score 54/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 74.8%

All Signals

  • BULLISH: Price oversold vs 30-day range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BEARISH: Downward momentum (-4.3%)
  • BULLISH: Trading 76.2% below Wall St target ($16.81)

Trading Range Analysis

30-Day Trading Range $10.10 - $10.91
Current vs Trading Range OVERSOLD

Support & Resistance Levels

Support Level $9.41
Resistance Level $10.72
Current Trend Strong Downtrend
Technical data as of May 22, 2026

Fundamental Context

Forward P/E (Next Year Est.) 0.78
Wall Street Target $16.81 (+76.2%)
Revenue Growth (YoY) -10.8%
Earnings Growth (YoY) -95.9%
Profit Margin 9.1%
Valuation Discount vs History -0.9% cheaper
PE vs Historical 0.8 vs 0.8 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -0.9% (market-implied from PE analysis)
1-Year Target $9.45 (-1%)
2-Year Target $9.37 (-2%)
3-Year Target $9.28 (-3%)
3-Yr Target (if PE normalizes) (PE: 1→1) $9.53 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.0, Growth: 23.2%) $503.00 (+5173%)
Base: (SPY PE: 0.8, Growth: 23.2%) $17.83 (+87%)
Bear: (PE: 0.7, Growth: 23.2%) $15.15 (+59%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (1x PE) as earnings recover.
Trailing PE: 10.96 | Current EPS (TTM): $0.91
Bull Case $21.93 (+130%)
Analyst growth 100.0%, PE expands to 12.1
Base Case $19.94 (+109%)
Market implied 100.0%, PE stable at 11.0
Bear Case $6.78 (-29%)
Severe decline -20.0%, PE contracts to 9.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 0.8 to 0.8
Stabilization Target: $9.79 (+2.6%)
PE Expansion Potential: +2.6%
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Last updated: May 22, 2026 8:13 PM ET
Data refreshes hourly during market hours. Next update: 9:13 PM
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