On Thursday, JPMorgan upgraded shares of Geely Automotive Holdings Ltd. (175:HK) (OTC: GELYF (OTC:GELYF)), shifting its stance from Neutral to Overweight and increasing the price target to HK$14.00, up from the previous HK$9.00. The revision reflects the firm's positive outlook on Geely's ongoing developments and strategic initiatives.
The upgrade is anchored in the belief that Geely's platform strategy will bolster its model cycle, enabling it to continue expanding its market share. JPMorgan has expressed confidence in the company's decision to separate its New Energy Vehicle (NEV) business, viewing it as a strategic move that aligns with Geely's long-term growth and technological edge in a competitive industry.
Geely's collaborations, including joint ventures with global and regional industry leaders such as Daimler (OTC:MBGAF) and CATL, were highlighted as key factors contributing to the company's favorable position. These partnerships, along with Geely's affiliation with Volvo (OTC:VLVLY), are anticipated to yield business synergies across various domains such as platform-sharing, joint product development, and cost-efficiency in sourcing components.
The analyst anticipates that these strategic partnerships will not only directly benefit Geely but also enhance its product offerings. This comprehensive approach is expected to position Geely advantageously in the market, suggesting a potential uptrend for the stock towards the industry average.
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