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<Research>BofAS Lifts XIAOMI-W TP to $52, Expects Continued Earnings Growth, Valuation Re-rating
Recommend 20 Positive 31 Negative 7 |
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BofA Securities, in its report, said that it is more confident in XIAOMI-W (01810.HK)’s competitive edge in the electric vehicle (EV) sector after a site visit to the company's Beijing automobile factory on February 12. Harnessing its extensive knowledge of consumer electronics and strong design capabilities, the broker considered that Xiaomi has built a strong brand image. With rapidly production capacity ramp-up, the broker expected sustainable earnings growth of the company to drive its valuation. BofA Securities forecast smartphone shipments to reach 190 million and 200 million units by 2026 and 2027, respectively. As for the IoT business, the broker saw room for growth in overseas markets, where margins are typically higher. In addition, the increased product mix and more in-house designs in home appliances may drive further margin expansion. This, coupled with the enhanced brand image of the automotive business, could bring synergies to the smartphone or IoT business. BofA Securities reiterated its Buy rating on XIAOMI-W, raised its 2025-26 earnings forecast by 2-6%, and lifted its target price to $52 from $37. AAStocks Financial News |
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