In a report released today, Joey Xu from Morgan Stanley maintained a Buy rating on Brilliance China Automotive Holdings (BCAUF – Research Report), with a price target of HK$5.50.
Joey Xu has given his Buy rating due to a combination of factors influencing Brilliance China Automotive Holdings. Despite the significant drop in net profit after tax for the BMW-Brilliance joint venture, which fell by 57% year-over-year, there remains optimism about the company’s financial outlook. The expectation of a recurring dividend announcement, supported by Brilliance’s commitment to distribute at least 50% of its annual profits, suggests a positive return for investors.
Furthermore, the stock’s potential upside to the price target is substantial, offering a 45% increase, which indicates a strong growth opportunity. The market capitalization and average daily trading value also reflect a robust market presence. These factors combined suggest that, despite recent challenges, Brilliance China Automotive Holdings is positioned for future success, justifying the Buy rating.
According to TipRanks, Xu is ranked #7162 out of 9339 analysts.
In another report released on March 4, J.P. Morgan also maintained a Buy rating on the stock with a HK$5.50 price target.