Investing
UBS upgrades Chinese EV maker Geely Auto
© Reuters. UBS raises estimates on Geely Auto
UBS upgraded Geely Automobile to a Buy rating (From: Neutral) and raised their 12-month price target on the Chinese automaker to HK$13.00 (From HK$12.00) as they see the company’s current risk/reward profile as “increasingly attractive”.
Geely’s stock is currently at its lowest point in five years. UBS thinks investors are worried about profit margins and internal cannibalization of Geely’s multi-brand EV strategy. Despite this, Geely sold over 60,000 EVs in December 2023, capturing 40% of the monthly EV market.
“We expect sequentially improving margin, starting from H223, on rising scale, expanding export sales and raw material cost declines.” Wrote UBS analysts in a note.
Geely’s rapid introduction of plug-in hybrid electric vehicles (PHEVs) has attracted consumers, and boosting the company’s EV market share. Geely management reported an impressive 30,000 pre-orders for the Galaxy E8 even before announcing official prices, indicating a strengthening brand presence.
Looking ahead, Geely plans to launch six new EV models in 2024 under the Galaxy, Zeekr, and Lynk brands, expanding its range of electric SUVs and sedans across different price segments. Anticipating this move, UBS projects Geely will achieve a 43% EV market share in 2024.
Read the full article here
-
Side Hustles7 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Investing7 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks
-
Make Money7 days ago
Here’s the Typical American’s Income at Every Age. How Do You Compare?
-
Investing7 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Side Hustles6 days ago
How to Develop Empowered Leaders Within Your Own Team
-
Passive Income5 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles5 days ago
How Your Body Language Can Help Win a Disagreement
-
Investing5 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale