BYD: Undervalued Battery Powerhouse Beyond EVs, Supported by Structural Growth and Vertical Integration

Bernstein analyst Eunice Lee reiterated a Buy rating on BYD Co yesterday and set a price target of HK$130.00.

Eunice Lee has given his Buy rating due to a combination of factors tied to BYD’s underrecognized battery leadership and attractive valuation. He argues that the market largely treats BYD as just a Chinese EV maker and is heavily discounting its broader portfolio, particularly its global-scale battery operations. His analysis suggests that the value of BYD’s battery business alone is close to the company’s entire enterprise value, implying investors are essentially getting the automotive, electronics, semiconductor, and other segments at little to no incremental valuation.

Lee also highlights BYD’s strong growth trajectory in both EV and energy storage batteries, with robust shipment expansion driven by internal demand and rapidly increasing sales to external OEMs and ESS customers. He notes that BYD is well positioned in the structural growth of energy storage, with leading rankings in both cell shipments and system integration and additional upside from sodium-ion technology. Combined with scale-driven cost advantages, deep vertical integration, significant R&D capabilities, and upcoming product and technology upgrades that could act as near-term catalysts, these factors support his view that the shares are undervalued and merit a Buy recommendation.

In another report released today, TipRanks – PerPlexity also upgraded the stock to a Buy with a HK$106.00 price target.