In Major Hong Kong stocks, Xiaomi Corporation (HK:1810) has been in the news since it successfully marked its entry into the EV market, sparking excitement among analysts. The company began the deliveries of its SU7 model on March 28, leading to a surge in share price of 16% on Tuesday. Xiaomi received an overwhelming response, with nearly 90,000 firm orders within 24 hours of its EV launch.
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As per a Reuters report, potential buyers are experiencing a waiting period between four and seven months, indicating a robust demand. Overall, Xiaomi’s stock has risen nearly 20% in the last month, driven by optimism regarding the company’s EV debut.
Xiaomi is a global company known for consumer electronics and smart devices. It has recently ventured into the EV sector.
Xiaomi’s Competitive Advantage
Xiaomi’s SU7 model is marketed as a high-performance sedan featuring advanced “super electric motor” technology, positioning it against industry giants such as Tesla Inc. (NASDAQ:TSLA). With claims of a superior driving range compared to its counterparts. Interestingly, the SU7 starts at a price point of $29,870, undercutting Tesla’s Model 3 by $4,000.
Analysts Upbeat on Xiaomi’s Growth Prospects
Last month, analyst Kyna Wong from Citi maintained a Buy rating on the stock, expressing optimism about Xiaomi’s smartphone market expansion in 2024 and other opportunities like artificial intelligence (AI) and EV sales. Her price target of HK$19.60 predicts an upside of more than 25%.
Recently, CMB International analyst Alex NG maintained a Buy rating on Xiaomi stock. NG raised his price target to HK$22.19 from HK$20.25, now predicting over 45% growth. NG believes the company’s EV launch has been positively received by the market, and the pre-orders have exceeded market expectations.
In the short term, he anticipates that investors will focus on the momentum of pre-orders, shipment growth, and consumer response over the next two months. Moving forward, CMB maintains a positive outlook and has adjusted its forecasts to accommodate EV shipments of 80,000, 150,000, and 200,000 for FY24, FY25, and FY26, respectively.
Is Xiaomi a Good Stock to Buy?
On TipRanks, 1810 stock has been assigned a Strong Buy rating based on nine Buys and one hold recommendation from analysts. The Xiaomi share price target is HK$20.51, which is 32% above the current trading level.
