Jefferies analyst Johnson Wan initiated coverage of Geely Automobile with a Buy rating with a price target of HK$11.50, down from HK$21.30. Wan expects a "challenging year" for China’s automakers, citing the "honeymoon stage of early NEV adoption" coming to an end, an intensified competition under a price war led by Tesla (TSLA), and the removal of EV subsidies and rising lithium prices, but Geely is likely a late mover with new launches also falling into "the sweet spot category" of RMB100K-200K in the sedan market.
Published first on TheFly
