Thanks to its global expansion and potential growth opportunities in the plug-in hybrid vehicle market, BYD's stock rating may be upgraded in the next 1 to 2 years.
According to Bloomberg, JPMorgan Chase & Co. analysts expect BYD to deliver 6 million vehicles globally in the next two years, thus raising BYD's target stock price by over 80%.
Based on data compiled by Bloomberg, JPMorgan has currently set the highest target prices for BYD's stocks in Hong Kong and Shenzhen, raising them to 475 HKD (approximately 442 RMB) and 440 RMB, respectively, while rating BYD's stock as "overweight." The firm projects that by 2026, BYD will deliver about 1.5 million vehicles in overseas markets, three times that number in the domestic Chinese market. In comparison, BYD sold about 3 million vehicles in 2023.
In early trading on July 10 in Hong Kong, BYD's stock price once rose by 2.6%, reaching 241.40 HKD (approximately 225 RMB). While participating in the brutal price war in the domestic Chinese market, BYD has also focused on boosting international sales and localization efforts. Despite the heavy losses faced by electric vehicle stocks this year, BYD's Hong Kong stock price has still increased by about 12% this year. In contrast, smaller peers like Li Auto and XPeng Motors have seen their stock prices drop by more than 45%.
JPMorgan analysts, including Nick Lai, wrote in a report: "Thanks to its global expansion and potential growth opportunities in the plug-in hybrid vehicle market, BYD's stock rating may be upgraded in the next 1 to 2 years."
JPMorgan stated that BYD will begin exporting competitively priced plug-in hybrid electric vehicles to Europe from July, such as the Seal U SUV, and started exporting models like the Shark to Mexico from June. JPMorgan analysts indicated that by 2026, BYD's ambition for global expansion will reach a significant milestone as its four overseas production bases or assembly lines in Thailand, Indonesia, Brazil, and Hungary are set to be completed and accelerate production.
