Analysts at JPMorgan Chase & Co. expect BYD to deliver 6 million vehicles globally over the next two years, according to Bloomberg, which raised its price target for BYD shares by more than 80 per cent.
Based on data compiled by Bloomberg, JPMorgan now has the highest price targets for BYD’s shares in Hong Kong and Shenzhen, raising them to HK$475 (RMB 442) and RMB 440, respectively, while rating BYD’s stock as a “hold”. The bank expects BYD to deliver about 1.5 million vehicles in overseas markets by 2026, while deliveries in its home market in China will be three times that number. By comparison, in 2023 BYD sold about 3 million vehicles.
At one point in early trading in Hong Kong, China, on 10 July, BYD shares rose 2.6 percent to HK$241.40 (about 225 yuan). BYD has focused on boosting international sales and localisation efforts while engaging in a brutal price war in its home market in China. BYD’s Hong Kong shares have risen about 12 per cent this year despite the battering electric car stocks have taken so far this year, compared with smaller peers Ideal Motors and Xiaopeng Motors, which have each seen their share prices plunge more than 45 per cent.
Analysts at JPMorgan, including Nick Lai, wrote in a report that “BYD’s stock rating may be raised in the next 1 to 2 years thanks to its global expansion and potential future growth opportunities in the plug-in hybrid car market.”
BYD will start exporting competitively priced plug-in hybrid electric vehicles, such as the Seal U SUV, to Europe from July and models such as the Shark to Mexico from June, JPMorgan said. By 2026, analysts at JPMorgan said, the company’s ambitions to seek global expansion will also reach a major milestone as BYD nears completion and accelerates production at four overseas production sites or assembly lines in Thailand, Indonesia, Brazil and Hungary.