M Stanley Hikes ZTE TP to $30, Upbeat on Xiaomi's Potential on ChatGPT-related Development
While acknowledging that the ChatGPT frenzy could turn into a driver for long-term demand, Morgan Stanley believed that the impacts from the generative AI product will likely be minimal in the near term, with limited effect on stimulating corporates' 2023 earnings growth.
Specifically, Morgan Stanley anticipated that ChatGPT is unlikely to generate any positive impact on smartphone shipment volume or internet revenue growth within this year. That said, should relevant positive effect manifest sooner than expected, $XIAOMI-W (01810.HK)$ should be better-positioned than its peer $Shenzhen Transsion Holdings Co., Ltd. (688036.SH)$ to capture the monetization opportunity to a greater extent.
The better prospect for XIAOMI was mainly attributable to its global monthly active users number of up to 582 million, internet business ARPU (12% higher than that of TRANSSION), and market-leading position in exploring AI and voice recognition application in the speaker segment. The stock was rated at Overweight, with a target price of $15.
The target price on $ZTE (00763.HK)$ was lifted from $21.7 to $30, with its rating maintained at Overweight, as Morgan Stanley believed that the company's market share gains in the server market will trigger valuation re-rating. $YOFC (06869.HK)$ , meanwhile, was downgraded from Overweight to Equalweight, with its target price raised from $17 to $18.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
