Citigroup Slashes MiniMax Stock Target 60% on M3 Pricing Woes

Citigroup cut its target price for MiniMax (stock code 00100) by 60%, from HKD 1,330 to HKD 533, while maintaining a 'Buy' rating. The downgrade reflects the pricing controversy and subdued market response surrounding the company's M3 model released in early June. Citigroup cited negative sentiment, user retention uncertainty, and monetization strategy ambiguity as near-term pressures on the Hong Kong-listed AI startup's stock.

Citigroup Cuts MiniMax Target Price 60% to HKD 533

Citigroup reduced MiniMax's target price from HKD 1,330 to HKD 533, a 60% decrease, according to the bank's latest report. The firm maintained its 'Buy' rating despite the sharp downward revision. The downgrade follows the pricing controversy and weak market reception of the M3 model launched in early June. Citigroup identified negative sentiment, user retention concerns, and unclear monetization strategies as factors likely to weigh on the stock in the near term.

Lock-Up Period Expires July 9 for Initial Shareholders

Citigroup placed MiniMax on its 30-day short-term downside watch, noting that the first batch of shares will exit the lock-up period on July 9. The bank expects increased volatility as this restriction lifts. Founders, Alibaba (stock code 09988), miHoYo, and other strategic investors have voluntarily committed to a 12-month lock-up period, according to the report.

Upcoming Conch 3 Release Cited as Potential Catalyst

Citigroup stated that the upcoming release of Conch 3 could help the company regain positive feedback. The bank indicated this product launch has the potential to mitigate some of the adverse factors currently affecting sentiment.

FAQ

What did Citigroup do to MiniMax's target price?
Citigroup cut MiniMax's target price by 60%, from HKD 1,330 to HKD 533, while keeping its 'Buy' rating.

Why did Citigroup downgrade MiniMax's target price?
The downgrade reflects the pricing controversy and weak market response to the M3 model released in early June, along with concerns over negative sentiment, user retention, and monetization strategy uncertainty.

When does MiniMax's lock-up period expire?
The first batch of shares exits the lock-up period on July 9, though major strategic investors including founders, Alibaba, and miHoYo have voluntarily committed to a 12-month lock-up.