UBS upgrades Geely Automotive stock rating on overseas growth
UBS upgraded Geely Automotive Holdings Ltd. (OTC: GELYF) stock rating to "Buy" and boosted its price target from HK$20.00 to HK$28.00, citing robust overseas expansion and product mix improvements as key growth drivers. The firm raised its 2026-2028 earnings estimates by approximately 30%, implying a 52% upside potential based on a 10x 2027 price-to-earnings ratio.
Geely's exports surged 157% year-over-year in the first half of 2026, with the company expecting 1 million units exported in 2026 and 1.5 million units in 2027. UBS highlighted Geely's profitability and strong cash position, as well as its strategic partnerships with global automakers like Renault, Ford, and potential collaborations with other international firms.
The company aims to secure two-thirds of its volume from overseas markets by the long term, focusing on ASEAN, Europe, Latin America, and the Middle East. Despite missing first-half revenue expectations in 2026, Geely reported strong profit margins and robust export growth. Meanwhile, Deutsche Bank launched a new product to monitor auto-sales in the UK, underscoring the importance of overseas sales for Chinese automakers.
China remains the world's largest auto exporter, with exports reaching 7.10 million units in 2025, a 21% increase year-over-year.
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