GigaCloud Technology downgraded to Hold amid momentum fatigue and macro risks despite strong EU growth.

GigaCloud Technology (GCT) has been downgraded to Hold due to risks of momentum fatigue after a triple-digit rally and softer trading months ahead. The company’s strong growth in high-potential EU markets has helped offset domestic demand and tariff challenges, supported by positive free cash flow and a healthy balance sheet. Despite an attractive EV/Sales ratio of 1.28x, a pullback to $41–$47 is recommended for better margin of safety, aligning with a base-case fair value in the $40s. The downgrade reflects caution amid macroeconomic headwinds and elevated short interest.