MiniMax Group Inc. shares plunged as much as 18% to an all-time low Monday after JPMorgan Chase & Co. cut its price target for the second time in less than a week. UBS Group AG also lowered its target by half on Sunday. The stock has lost more than 80% of its value since its March peak.
MiniMax Group Inc. shares slumped as much as 18% to an all-time low Monday after JPMorgan Chase & Co. cut its price target for the second time in six days.
The dilution from the company's latest fundraising round is eroding per-share value faster than anticipated, JPMorgan analysts said in a note.
JPMorgan trimmed its target by another 20%, following a 25% reduction last Tuesday. UBS Group AG also cut its price target by half on Sunday. The stock has now lost more than 80% of its value since its March peak, with shares changing hands at their lowest since the company's initial public offering.
The multiple downgrades reflect growing unease on Wall Street about how MiniMax's aggressive capital raising is impacting existing shareholders. The Shanghai-based company, which develops large language models and AI applications, has been raising funds to build compute infrastructure and hire talent in the competitive AI arms race.
MiniMax's decline stands out even amid a broader pullback in Chinese technology stocks, which have faced headwinds from regulatory uncertainty and a slowing economy. The stock's slide from its March high represents one of the steepest drops among AI-related companies listed in Hong Kong.
The company has not issued a public statement in response to the analyst downgrades. Investors will watch for any clarification from management, including potential share buyback plans or guidance on future fundraising.
The decline puts MiniMax at its lowest since listing, testing whether institutional holders will step in to support the stock. The company's next catalyst is its upcoming earnings report, where investors will scrutinize revenue growth against the backdrop of rising capital expenditures.
This article is for informational purposes only and does not constitute investment advice.
