Full Truck Alliance Earns Buy Rating from Morgan Stanley with $14 Price Target

Morgan Stanley analyst Eddy Wang maintains a Buy rating for Full Truck Alliance with a $14.00 price target. The company anticipates stable take rates and significant growth in transaction services revenue over the next two to three years, driven by order volume growth and potential commission rate increases. Despite policy uncertainties, Full Truck Alliance is optimistic about its future gross and operating profit margins, and plans to allocate more free cash flow to shareholders, enhancing shareholder value. Wang has a 31.58% success rate on recommended stocks and an average return of -7.9%.

Title: Full Truck Alliance Co. Ltd. Stock Surges Amid Positive Earnings and Strategic Collaborations

Full Truck Alliance Co. Ltd. (YMM) has seen its stock price rise by 5.29% following the release of its Q2 2025 earnings report. The company reported a significant increase in adjusted earnings per share (EPS) from 13 cents to 18 cents and a substantial jump in revenue from $380.4M to $452.2M. Morgan Stanley has tagged Full Truck Alliance as a 'Research Tactical Idea,' maintaining a $15 price target and expecting an upward swing in share value [1].

The company's Q2 performance highlights robust earnings, with revenue and EPS figures exceeding analysts' expectations. However, Full Truck Alliance forecasts moderate Q3 revenue growth between 1.3% to 4.6%, tempered by an anticipated decline in freight brokerage service volumes due to higher service fee rates [2].

Morgan Stanley analyst Eddy Wang maintains a Buy rating for Full Truck Alliance with a $14.00 price target. The company anticipates stable take rates and significant growth in transaction services revenue over the next two to three years, driven by order volume growth and potential commission rate increases. Despite policy uncertainties, Full Truck Alliance is optimistic about its future gross and operating profit margins and plans to allocate more free cash flow to shareholders, enhancing shareholder value [3].

The stock observed a notable incline from $11.04 to close at $12.70 by August 22, 2025, demonstrating amplified market confidence and quarterly financial strength. The company's valuation metrics indicate a relatively high PER ratio of 26.38 and a price-to-sales ratio of 73.66, suggesting significant market confidence despite the elevated price relative to sales. YMM’s leverage ratio stands at 1.1, indicating manageable debt levels compared to equity. Furthermore, the company showcases solid profitability with a return on equity of 18%, supported by efficient capital management. These factors highlight a stable financial foundation with potential for sustainable growth, bolstered by a strong asset base valued at approximately $41.28 billion [1].

Looking ahead, Full Truck Alliance is expected to sustain its performance amid rising operating costs and sector-wide challenges. Investors are advised to focus on management guidance and macroeconomic trends rather than quarterly results, as long-term value depends on operational consistency.

References:
[1] https://stockstotrade.com/news/fulltruckalliancecoltd-ymm-news-2025_08_24/
[2] https://investorshub.advfn.com/market-news/article/15100/full-truck-alliance-stock-falls-over-4-as-brokerage-fee-changes-cloud-outlook
[3] https://www.ainvest.com/news/full-truck-alliance-posts-solid-q2-earnings-driven-revenue-growth-strong-operating-margins-2508/