Morgan Stanley analyst Jenny Jiang upgraded Waterdrop to Overweight from Equal Weight with a price target of $2.10, up from $2. The analyst cites improving fundamentals and regulatory environment for the upgrade. Waterdrop’s revenue continued to recover sequentially, up 8% quarter-over-quarter, and its earnings have been positive for the past three quarters, Jiang tells investors in a research note. The analyst believes the company’s channel diversification and increasing focus on business quality are “bearing fruit.” Jiang adds that regulators have made progress on American depository receipt negotiations.
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