Tim Hsiao, an analyst from Morgan Stanley, maintained the Hold rating on Nexteer Automotive Group (NTXVF – Research Report). The associated price target is HK$5.50.
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Tim Hsiao has given his Hold rating due to a combination of factors including Nexteer Automotive Group’s strategic positioning in the steer-by-wire (SbW) technology market. While Nexteer sees potential in SbW for its flexibility and safety benefits, the current market penetration remains low, with significant growth expected only after 2030. This cautious outlook on near-term adoption contributes to the Hold rating.
Additionally, Nexteer’s strong market presence in China, particularly among leading OEMs like BYD, Chang’an, and Chery, supports its competitive stance. However, the competitive market environment and the time required for SbW technology to become mainstream suggest a balanced risk-reward scenario, justifying the Hold recommendation.