Citi Cuts MiniMax Target Price by 60% to $533 Amid M3 Model Pricing Dispute

According to Citi, the recent stock price decline of MiniMax (HK: 00100) reflects pricing controversy around its M3 model launched in early June and weak market reception. The brokerage slashed its target price by 60%, from 1,330 Hong Kong dollars to 533 Hong Kong dollars, citing near-term pressure from negative sentiment, user retention concerns, and monetization strategy uncertainty. The stock was added to Citi's 30-day downside watch list.

Citi expects further volatility as the initial lock-up period expires on July 9, despite voluntary 12-month lock-up commitments from founder Zhang Yiming, Alibaba (HK: 09988), and miHoYo. The brokerage maintained a "buy" rating, noting that the upcoming Conch 3 model could help restore market confidence and ease headwinds.