HSBC cuts target price on BYD: A-Share to RMB 302 due to weaker net profit estimate
$BYD COMPANY(01211.HK$ $Tesla(TSLA.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ The bank lowered its target for BYD A-shares to RMB301 and H-shares to HKD322.
My Take: The reason HSBC cuts BYD share target price is because of the lowering of 2024-26e net profit estimates for BYD by 8%, 4% and 4%, respectively, mainly on lower revenue estimates. BYD announced a weak Q1 2024 earnings last month. Read here: BYD's net profit in Q1 down 47% from Q4 as car sales decline 33%
Someone posted that HSBC upgraded BYD stock ratings because "BYD technology is ahead of its peers (cited Tesla) making it difficult to catch up in the short term". I took that post with a pinch of salt because it didn't provide any source of information. Here are 3 reasons why it's likely "fake news" by quoting out of the context:
1) Someone purposely misquoted what HSBC is trying to say. Analysts don't rate a company's stock by comparing it with its peers. It's important to ask for the source of information and read the original article.
2) Despite BYD cutting its EV price, Tesla BEV Q1 2024 delivery beats BYD. Read here: Tesla beats BYD BEV sales volume and quarterly change in Q1 2024
3) Morgan Stanley gives Tesla Buy rating and maintains target price at $310 amid the company's advanced technology in AI, Autonomous driving and Energy. Read here: Morgan Stanley gives Tesla stock Buy Rating & TP $310 weighs on TMP4
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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