Investors should hold Luckin Coffee (LK) rather than sell
Luckin Coffee Inc (LK) currently trades at $4.68 and has fallen by 13% today. Banks stand to lose more than $100 million from a loan they made to the chairman of Chinese coffee chain Luckin Coffee Inc., whose share price plunged after the company said much of its 2019 sales were fabricated. Shares deserved the beating for inflating revenue, but the question is whether investors who bought during the recent highs should unload or not. The company is not likely to go out of business and could bounce back after everything blows over. The probability of the company staying in business is much higher than going bankrupt.
Based on this information, investorsQ rates this stock 4 out of 10. We give it this rating based on current information written in this article. The high forecast for Luckin Coffee Inc is $53.20 and the low is $20.00. Notably, the company’s market cap is $1.18 billion with a 52 week high of $51.38 and a 52 week low of $4.27. LK has gained down $0.69 from the previous closing price of $5.36. LK has changed in price by -15.71 per share in the last 12 months.