Cantor Fitzgerald maintains $6 price target on VinFast stock

On Monday, Cantor Fitzgerald reiterated its positive stance on VinFast Auto Ltd. (NASDAQ:VFS), maintaining an Overweight rating and a $6.00 price target for the company’s shares. According to InvestingPro data, this target represents significant upside potential from the current price of $3.39, with analyst targets ranging from $5 to $8. The endorsement comes amid the firm’s recognition of VinFast’s competitive advantages in the electric vehicle (EV) market, which include more affordably-priced EVs, vertical integration, and manufacturing operations in Vietnam.

VinFast, supported by the financial and brand strength of its parent company, Vingroup, has established a global footprint, granting it access to diversified markets. This strategic positioning is expected to be a key driver in the company’s growth. The company has demonstrated strong momentum with revenue growth of 64.54% in the last twelve months, though InvestingPro analysis indicates challenges with negative gross margins of -44.48%. Cantor Fitzgerald analysts are buoyed by VinFast’s financial year 2025 (FY25) vehicle guidance, which anticipates a doubling in deliveries.

The recent capital infusion of approximately $3.5 billion is seen as a significant boost for VinFast, enhancing the company’s financial stability. Analysts believe this injection of funds will extend VinFast’s cash runway to mid-2026, providing a solid foundation for future operations and growth.

The valuation model used by Cantor Fitzgerald to justify the $6.00 price target assumes an 11% weighted average cost of capital (WACC) and a terminal value growth rate of 2% over the long term. While the outlook for VinFast is optimistic, the analysts also caution that potential risks could impact the company’s trajectory. These risks include supply chain disruptions, manufacturing constraints, a high cost of goods sold, a highly competitive market, and the possibility of slower-than-expected customer adoption rates for VinFast’s EV offerings. With the next earnings report scheduled for April 16, investors can access comprehensive analysis and 12 additional key insights through InvestingPro’s detailed research reports.

In other recent news, VinFast Auto Ltd. reported impressive vehicle delivery numbers for fiscal year 2024, surpassing expectations with 97,399 vehicles delivered. This figure exceeded the company’s revised guidance of 80,000 vehicles and outperformed estimates from analysts such as Cantor Fitzgerald and Visible Alpha Consensus. The company is optimistic about the future, projecting that vehicle deliveries will at least double in fiscal year 2025. Additionally, VinFast has entered into a Memorandum of Understanding with Motech Automotive Service Centers to expand its service network in the Philippines, aiming to accredit 63 Motech workshops as authorized service centers. This move is part of VinFast’s strategy to enhance its presence in Southeast Asia.

Cantor Fitzgerald has maintained an Overweight rating for VinFast with a $6 price target, citing the company’s ambitious expansion plans and robust vehicle delivery performance. In another development, VinFast has announced a reduction in prices for 11 of its EV models by 2% to 14%, aiming to double sales in 2025. The company has also decided to discontinue its EV battery rental services to reduce initial costs for customers. In Canada, VinFast is positioning its VF (NYSE:VFC) 9 SUV as a competitive option, offering a 10-year vehicle warranty and a comprehensive e-mobility service app to alleviate charging anxiety. Meanwhile, in Vietnam, VinFast reported a 25% rise in February EV sales, delivering over 12,500 electric cars, highlighting the importance of the domestic market in driving revenue.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.