(Yicai Global) Nov. 15 -- Goldman Sachs Group Inc. [NYSE: GS] has raised the target price of Kweichow Moutai Co. [SHA:600519], the maker of pricey liquor popular in China, 11 times this year, per Bloomberg News, with the latest estimate now slinging it to USD132.79 (CNY881) per share.
The new increase is 18 percent higher than the last target price, per a notice analysts Xufa Liao and Brian Dai published today, and implies a gain of 29 percent in the next 12 months for the company, which earlier this year became the world's most-valuable distiller.
Moutai's new retail model will squeeze distributors' margins and boost the company's earnings by allowing it to raise its ex-factory price more regularly. The expansion of its online platform is also fueling its greater feistiness, according to the notice.
Moutai's share price has risen almost 400 percent in the past three years, and it is now the most expensive company in China's A-share market. The firm's net income more than doubled to CNY8.7 billion in the latest quarter, per its report.