Bernstein reiterates BYD stock Outperform rating, HK$460 target

Published 26/03/2025, 16:30
Bernstein reiterates BYD stock Outperform rating, HK$460 target

On Wednesday, Bernstein analysts maintained their Outperform rating and a price target of HK$460.00 on BYD Co Ltd (OTC:BYDDY) (1211:HK) (OTC: BYDDF (OTC:BYDDF)) shares. With a market capitalization of $156 billion and impressive 90% return over the past year, BYD (SZ:002594) has demonstrated strong momentum. Following the release of the company’s full-year 2024 earnings, Bernstein expressed continued confidence in BYD’s growth trajectory, particularly highlighting the company’s potential in overseas markets.

BYD disclosed its FY 2024 earnings on Tuesday, with a subsequent earnings presentation held on Wednesday in Hong Kong. The company reported robust results for the fourth quarter of 2024, showing 29% revenue growth, which were positively received. Wang Chuan-fu, the founder and CEO of BYD, made a notable appearance at the presentation, providing an optimistic forecast for the company’s future. InvestingPro analysis reveals the company achieved a perfect Piotroski Score of 9, indicating exceptional financial strength.

After a comprehensive analysis of BYD’s financials and potential for growth, Bernstein updated their model, which reaffirmed their positive stance on the stock. The analysts emphasized BYD’s sustainable growth, driven by its dominance in the domestic market and its strategic international expansion.

The firm’s advancements in Advanced Driver-Assistance Systems (ADAS) technology and the introduction of new fast charging solutions were cited as key factors reinforcing Bernstein’s belief in BYD’s ability to preserve its market share in China. Moreover, the analysts expect international markets to play an increasingly significant role in BYD’s growth, contributing to a sustainable and margin-enhancing expansion for the company.

In other recent news, BYD Co Ltd reported fourth-quarter earnings for 2024 that exceeded expectations by 5%, driven by strong sales volume and an improved product mix, according to JPMorgan. The investment firm maintains an Overweight rating for BYD, with a price target of HK$600, and anticipates record earnings and sales volumes for the company in the coming years. BYD is also planning to select a location for its third European plant within the next seven to eight months, following the commencement of operations at its first European facility in Hungary. Additionally, the company is set to hire 20,000 new employees at its Zhengzhou facility in the first quarter to support increased production capacity.

BYD recently showcased a new battery and charging system capable of providing 400 kilometers of range in just 5 minutes, with plans to start selling vehicles equipped with this technology next month. Meanwhile, Brazilian labor authorities are investigating allegations of human trafficking and forced labor at a BYD factory site in Bahia State. The company and its contractor have agreed to provide temporary housing for affected workers during the investigation. Globally, carmakers sold over 17 million fully electric and plug-in hybrid vehicles in 2024, marking a 25% increase, with China leading the sales surge.

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