Luckin Coffee ( OTCPK:LKNCY ) started off the new year with a 11.99% jump higher on Tuesday.
Investors snapped up the coffee chain after a new study suggested that COVID infections in China may be at their peak .
According to the South China Morning Post, the study published by researchers from Ruijin Hospital and Shanghai Jiao Tong University point to easing infection rates across urban areas. Specifically, Beijing, Shanghai and Chongqing are said to have seen the worst of the post-COVID Zero outbreaks. A higher rate of mobility with consumers could set up Luckin ( OTCPK:LKNCY ) to see traffic and revenue gains in 2023.
Shares of Luckin Coffee closed at $24.66, which is within striking distance of the 52-week high of $25.08. See the advanced trading chart on Luckin.
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Why did Luckin Coffee pop today? Traffic trends could improve in 2023