UBS upgrades Chinese EV maker Geely Auto By Investing.com

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<span>© Reuters. UBS raises estimates on Geely Auto</span><br />
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<p>UBS upgraded Geely Automobile to a Buy rating (From: Neutral) and raised their 12-month price target on the Chinese automaker to HK$13.00 (From HK$12.00) as they see the company’s current risk/reward profile as “increasingly attractive”.</p>
<p>Geely’s stock is currently at its lowest point in five years. UBS thinks investors are worried about profit margins and internal cannibalization of Geely’s multi-brand EV strategy. Despite this, Geely sold over 60,000 EVs in December 2023, capturing 40% of the monthly EV market.</p>
<p>“We expect sequentially improving margin, starting from H223, on rising scale, expanding export sales and raw material cost declines.” Wrote UBS analysts in a note.</p>
<p>Geely’s rapid introduction of plug-in hybrid electric vehicles (PHEVs) has attracted consumers, and boosting the company’s EV market share. Geely management reported an impressive 30,000 pre-orders for the Galaxy E8 even before announcing official prices, indicating a strengthening brand presence.</p>
<p>Looking ahead, Geely plans to launch six new EV models in 2024 under the Galaxy, Zeekr, and Lynk brands, expanding its range of electric SUVs and sedans across different price segments. Anticipating this move, UBS projects Geely will achieve a 43% EV market share in 2024.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/ubs-raises-estimates-on-geely-auto-432SI-3267356">Source link </a></p><p>The post <a href="https://forextraderhub.com/ubs-upgrades-chinese-ev-maker-geely-auto-by-investing-com.html">UBS upgrades Chinese EV maker Geely Auto By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>