Analyst Ji Shi from CMB International Securities maintained a Buy rating on Geely Automobile Holdings and increased the price target to HK$25.00 from HK$24.00.
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Ji Shi has given his Buy rating due to a combination of factors that highlight Geely Automobile Holdings’ strong financial performance and growth potential. Geely’s earnings for the second quarter of 2025 exceeded market expectations, with a notable improvement in gross profit margin despite a challenging pricing environment. This financial strength is further supported by the company’s successful new energy vehicle (NEV) models, which are expected to drive future growth as they expand into various market segments.
Furthermore, Ji Shi anticipates that Geely’s upcoming vehicle launches will be well-received, contributing to an increase in average selling prices and gross margins. The analyst has also revised upward the company’s net profit estimates for the fiscal years 2025 and 2026, reflecting confidence in Geely’s cost reduction strategies and integration synergies. Although there are risks such as potential lower sales volumes or gross margins, the overall outlook remains positive, justifying the Buy rating and a slight increase in the target price.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a HK$24.00 price target.