2026 CFA Institute Research Challenge Finals - Full Presentation

Why It Matters

The analysis shows that despite ESG and liquidity concerns, Neutra’s defensive market position and hedged currency exposure could sustain modest upside, offering investors a nuanced view of emerging‑market consumer staples while highlighting the CFA Challenge’s role in developing high‑caliber financial analysts.

Key Takeaways

• CFA Institute Research Challenge finals showcase global university finance talent.
• Jordan team recommends hold on Neutra with 3.4% upside target.
• ESG gaps and liquidity issues are primary risk factors for Neutra.
• Geopolitical tensions and currency volatility impact revenue forecasts.
• Valuation blends DCF (90%) and relative methods, yielding modest upside.

Summary

The CFA Institute held its 20th‑anniversary Research Challenge finals, bringing together six university teams from Asia‑Pacific, EMEA and the Americas to present equity analyses before a panel of global judges. The event highlighted the competition’s role in shaping future finance professionals and underscored the Institute’s partnership with Hong Kong’s Financial Services and Treasury Bureau.

The Jordanian team from Princess Sumaya University for Technology delivered a hold recommendation on Neutra, a Jordan‑based infant formula producer. They set a target price of 1.07 JOD, reflecting a modest 3.4% upside, and justified it with a blended valuation—90% discounted cash flow and 10% relative multiples. Their analysis noted a 5‑year revenue growth forecast of 9%, a declining gross margin in 2026 due to geopolitical pressures, and an improving cash conversion cycle that outperforms peers.

Key observations included Neutra’s ESG score of 6.8, a non‑independent board, and a free‑float below 10%, all contributing to liquidity risk. The team highlighted the company’s hedging strategy—fixed‑rate euro purchases and sales in dollar‑pegged markets—to mitigate currency volatility across its African and Levantine operations. They also cited the firm’s defensive market position in the inelastic baby‑formula sector as a buffer against economic downturns.

For investors, the analysis signals that while Neutra faces governance and liquidity challenges, its defensive industry stance and emerging export growth may support a near‑fair‑value valuation. The presentation also illustrates how the Research Challenge equips students with rigorous, real‑world financial modeling and risk assessment skills, reinforcing the pipeline of talent for the global finance industry.

Original Description

Watch the full finalist presentations from the 2026 CFA Institute Research Challenge Global Final, held in Hong Kong for the first time.

This year, more than 8,000 students from over 1,200 universities across 160 markets took part in the Challenge. After months of research, analysis, mentoring, and competition, six university teams advanced to the global stage.

Each team stepped into the role of a professional research analyst, presenting their findings and putting their financial analysis, valuation, report writing, ethics, and presentation skills to the test.

From sharp research to confident recommendations, the Global Final showcased the talent, discipline, and judgment shaping the future of the investment profession.

Watch the full presentations:

00:04:14 Princess Sumaya University for Technology

00:29:51 California State University – Fullerton

00:55:26 University of Waterloo

01:21:01 University of Ljubljana

01:46:15 Peking University

02:11:45 Shanghai Jiao Tong University

02:36:54 Winner announcement

Learn more about the CFA Institute Research Challenge, our annual global equity research competition for university students building real-world financial analysis and presentation skills: https://cfainst.is/4u9b2ES

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