China MeiDong Auto downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Olivia Xu downgraded China MeiDong Auto to Neutral from Buy with a price target of HK$11, down from HK$24. The firm notes an increasing dealership discount in China following Tesla’s (TSLA) pricing cut in January and argues that Meidong’s relatively low exposure to aftersales makes it less resilient to a volatile pricing environment and vehicle pricing competition headwinds.