BofA Securities upgrades Great Star Industrial stock to Buy on strong execution

Published 10/07/2025, 08:28
BofA Securities upgrades Great Star Industrial stock to Buy on strong execution

Investing.com - BofA Securities upgraded Hang Zhou Great Star Industrial Co (SZ:002444) from Neutral to Buy and raised its price target to RMB33.00 from RMB26.60.

The upgrade follows Great Star’s earnings beat in the first half of 2025, which BofA Securities says demonstrates the company’s "strong execution capability in share gain and penetrating into new products (electronic tools)."

BofA Securities also cited lower tariff levels in Vietnam (20% versus 46% announced in April) as a positive factor that should better support revenue growth in the US market, which accounted for 63% of Great Star’s total revenue in 2024.

The firm noted that Great Star’s diversified overseas manufacturing capacity across Vietnam, Cambodia, Thailand, and the US, with high localization levels, enables it to gain market share from competitors despite the still high tariff level for products exported directly from China to the US.

BofA Securities raised its earnings estimates for Great Star by 22%, 24%, and 24% for 2025, 2026, and 2027, respectively, based on higher revenue and margin forecasts, while maintaining a 2025 P/E multiple of 16x for its price target calculation.

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