Guangzhou Automobile initiated with a Neutral at Goldman Sachs

Goldman Sachs analyst Tina Hou initiated coverage of Guangzhou Automobile H-shares with a Neutral rating and HK$4.80 price target, while starting the A-shares with a Sell rating and Rmb8.70 target. GAC has its volume and profit generation heavily exposed to the traditional ICE business as one of the largest SOE auto makers in China, but the firm expects GAC to continue gaining momentum with its NEV brand Aion, the analyst tells investors.