Morgan Stanley analyst Tim Hsiao reiterated a Buy rating on ZEEKR Intelligent Technology Holding Limited Sponsored ADR (ZK – Research Report) today and set a price target of $36.00.
Tim Hsiao has given his Buy rating due to a combination of factors including ZEEKR’s significant revenue growth and improved profit margins. The company reported a 24% increase in quarterly revenue, driven by a 34% rise in vehicle sales, which reflects strong demand and effective sales strategies. Additionally, ZEEKR’s vehicle gross margin improved by 1.7 percentage points, indicating better cost management and economies of scale.
Furthermore, the company’s strategic plans, such as the upcoming model launches and integration with Lynk, are expected to bolster its market position. These initiatives, along with a positive margin outlook for the upcoming year, underpin Tim Hsiao’s optimistic view on ZEEKR’s potential for future growth, justifying the Buy rating.