CGS-CIMB analyst Ray KWOK CFA has reiterated their bullish stance on XIACF stock, giving a Buy rating on November 20.
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Ray KWOK CFA’s rating is based on Xiaomi’s strategic initiatives and growth prospects in both the electric vehicle (EV) and smartphone markets. The company is addressing production bottlenecks with plans to double its annual EV production capacity by 2026, which is expected to drive future shipment growth. Additionally, Xiaomi is set to launch new EV models and enter the European premium market by 2027, enhancing its competitive position.
Furthermore, Xiaomi’s strategy to mitigate memory chip cost inflation through long-term supplier agreements and its focus on the premium smartphone segment are key factors. The company’s substantial investment in research and development, particularly in core technologies like system on chips and artificial intelligence, underpins its long-term competitiveness. Xiaomi’s expansion of its global retail footprint, aiming for 10,000 stores by 2030, and its profitable AIoT and lifestyle segment further support the Buy rating, with a target price of HK$56.0.
According to TipRanks, KWOK CFA is a 4-star analyst with an average return of 31.3% and a 46.15% success rate.
In another report released on November 20, Morgan Stanley also maintained a Buy rating on the stock with a HK$62.00 price target.