Geely Automobile upgraded to Buy from Neutral at UBS

UBS upgraded Geely Automobile to Buy from Neutral with a price target of HK$13, up from HK$12. Potential margin pressure and concerns over the internal cannibalization of its multi-brand EV strategy are priced in, and the firm expects sequentially improving margin beginning in 2H23 on rising scale, expanding export sales and raw material cost declines, the analyst tells investors in a research note.