Geely Automobile Holdings, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Tim Hsiao from Morgan Stanley maintained a Buy rating on the stock and has a HK$24.00 price target.
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Tim Hsiao has given his Buy rating due to a combination of factors that indicate strong growth potential for Geely Automobile Holdings. The company plans to launch several new models in 2025, which could drive an increase in average selling prices and enhance brand value, particularly for its Galaxy and ZEEKR Tech Group brands. This strategic move is expected to support Geely’s target of achieving a full-year volume of 3 million units.
Additionally, Geely is optimistic about its overseas sales, aiming for a 30% half-on-half growth in the second half of 2025. This growth is anticipated despite a decline in sales in Eastern Europe during the first half of the year. The company is also focused on improving its profitability per vehicle by reducing costs and optimizing its product mix. These efforts, combined with a positive outlook on operational efficiency and synergy from ZEEKR integration, have led to an upward revision of earnings estimates and price target, reinforcing the Buy rating.
Hsiao covers the Consumer Cyclical sector, focusing on stocks such as Nio, XPeng, Inc. ADR, and Hesai Group Sponsored ADR. According to TipRanks, Hsiao has an average return of -1.8% and a 40.00% success rate on recommended stocks.