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Chagee Holdings Limited (NASDAQ:CHA) is among the best Chinese stocks to buy according to hedge funds. As of April 24, Chagee Holdings Limited (NASDAQ:CHA) has a Buy rating from 75% of the analysts covering the stock, with the remaining 25% neutral, making the stock one of the best Chinese stocks to buy. Among the firms bullish on the company is JPMorgan. The firm upgraded the company to Overweight from Neutral and lifted the price target from $11.50 to $16 on April 2. The firm associated this optimism with better same-store sales dynamics and anticipations of narrowing declines.

JPMorgan believes revenue and profit will largely remain unchanged in 2026, relative to the 2025 level. This is in line with the management’s outlook. Additionally, the firm anticipates a rebound in same-store sales, overseas store expansion, and cost control to drive a gradual re-rating. What makes Chagee Holdings Limited (NASDAQ:CHA) appealing is its Korea market entrance and possible rises in shareholder returns through cash dividends or share buybacks, the firm highlighted.

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On the other hand, Macquarie trimmed the price target on Chagee Holdings Limited (NASDAQ:CHA) to $9.30 from $15.40 and reiterated a Neutral rating on April 1. The firm cited poor Q4 performance, with revenue falling 11% YoY and rising expenses weighing on profit.

Chagee Holdings Limited (NASDAQ:CHA) is a Shanghai-based company that owns and operates teahouses. Incorporated in 2017, the company specializes in tea drinks and related raw materials, packaging, and other teahouse supplies.

While we acknowledge the potential of CHA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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