Analyst Alex NG from CMB International Securities reiterated a Buy rating on Xiaomi (XIACF – Research Report) and increased the price target to HK$59.99 from HK$59.52.
Alex NG has given his Buy rating due to a combination of factors, including Xiaomi’s strong performance in the smartphone market and its strategic positioning in the IoT and EV sectors. Xiaomi has regained the number one spot in China, benefiting from Apple’s weakness, and is expected to see significant growth in revenue and adjusted net profit for the first quarter of 2025. The company’s global smartphone shipments have increased, and it has expanded its market presence in regions like LATAM, EMEA, and SEA, which is anticipated to continue at the expense of competitors like Apple and Samsung.
Furthermore, Xiaomi’s IoT segment is poised for growth, supported by China’s subsidy policy and the company’s expansion into AI smart glasses and overseas markets. The EV segment shows promise with a strong backlog and improving profitability. Upcoming product launches and updates in the EV sector are expected to act as catalysts for further growth. Overall, these factors contribute to a positive outlook for Xiaomi, justifying the Buy rating and the raised target price.
In another report released on April 22, Jefferies also maintained a Buy rating on the stock with a HK$63.25 price target.