Chinese e-cigarette company RLX Technology (NYSE:RLX) suffered major losses today after reporting fourth-quarter results. RLX stock closed down 36% amid growing regulatory concerns. Investors and analysts are abuzz on whether it’s time to offload the vaping stock, or get in at its current discount.
So what is going on with RLX Technology?
Well, RLX generally had solid numbers to report in its earnings call today. The company reported revenue of $298.8 million, up more than 17% year over year. Its adjusted U.S. income of $77.6 million was a huge change from a loss in 2020.
It seems therefore that today’s drop is less to do with the numbers and more about recent hesitancy around Chinese stocks as a whole. Indeed, the KraneShares CSI China Internet ETF (NYSEARCA:KWEB) closed down nearly 10% today as regulatory concerns plague a number of Chinese companies.
This week, the U.S. Securities and Exchange Commission (SEC) highlighted five Chinese companies for potential delisting due to their failure to adhere to audit requirements. As a result, Chinese stocks across the board have been falling hard. Plus, RLX Technology faces regulatory pressures of its own. As executives shared during its earnings call, new rules governing e-cigarette firms are soon set to take effect.
Shares of RLX are down more than 90% since the company came public last year. With RLX sitting at $1.49, let’s see where the experts think it’s headed next.
3 Analysts Weigh In on RLX Stock
- CNN’s panel of five analysts set a median 12-month price target of $4.31, a 190% increase over today’s price. Three of the analysts recommended the stock as a “buy.” One rated it as a “hold” and one analyst recommended selling the stock.
- Bank of America analyst Louise Li has a price target of $4.10. This implies more than 150% upside from the current share price.
- Finally, according to Seeking Alpha, RLX is a “buy.” Six analysts gave an average price target of $3.83, implying more than 150% upside.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.