Eunice Lee, an analyst from Bernstein, maintained the Buy rating on Xiaomi. The associated price target remains the same with HK$60.00.
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Eunice Lee has given his Buy rating due to a combination of factors that highlight Xiaomi’s strong performance in the electric vehicle (EV) sector. Xiaomi has achieved impressive gross margins in its EV business, reaching 26.4% in the second quarter of 2025, which surpasses many competitors. This success is attributed to Xiaomi’s pricing power, manufacturing scale advantages, and procurement savings.
Furthermore, Xiaomi’s ability to leverage its brand equity allows it to enhance margins through a strategic product mix and personalization options. A significant portion of Xiaomi’s EV buyers opt for higher-end trims and additional features, contributing to increased margins. Additionally, Xiaomi benefits from high-volume production and superior capacity utilization, achieving economies of scale. The company’s deep supply chain expertise and strong supplier relationships further drive cost savings, positioning Xiaomi favorably in the competitive EV market.
According to TipRanks, Lee is a 4-star analyst with an average return of 13.8% and a 57.38% success rate. Lee covers the Consumer Cyclical sector, focusing on stocks such as BYD Co, Li Auto, and XPeng, Inc. ADR.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a HK$66.00 price target.