Powell’s speech, Nvidia’s chips, Meta deal - what’s moving markets
On Monday, Cantor Fitzgerald reaffirmed its Overweight rating on VinFast Auto Ltd. (NASDAQ:VFS), despite potential challenges due to tariffs. The firm’s analysts pointed out that VinFast, which currently produces all of its vehicles in Vietnam, might see its U.S. sales affected by significant import tariffs. The Trump administration previously imposed a 25% tariff on all auto imports, along with a reciprocal tariff of 46% on goods from Vietnam. Currently trading at $2.83, VFS has seen its stock decline by nearly 30% year-to-date, though analysts maintain price targets between $5-8. According to InvestingPro, the stock appears undervalued based on its Fair Value analysis.
Despite these potential headwinds, VinFast’s impact on the U.S. market has been limited so far, as its deliveries to the United States have been minimal. The company has been focusing on international markets, particularly in Asia. This strategic prioritization could help VinFast mitigate the effects of the tariffs. The company has demonstrated strong revenue growth of 64.5% over the last twelve months, though InvestingPro data reveals challenges with negative gross margins of -44.5%.
The analysts highlighted that VinFast’s management has options to navigate through the tariff landscape. They suggested that the company could continue to concentrate on markets outside the U.S., which would lessen the impact of the tariffs on its business.
VinFast’s decision to prioritize international markets in Asia over the U.S. could be a calculated move to sidestep the tariffs’ potential to hinder its growth. The company’s international focus could provide a buffer against the additional costs imposed by the U.S. tariffs.
The Overweight rating from Cantor Fitzgerald indicates the firm’s confidence in VinFast’s ability to manage the tariff situation and maintain its growth trajectory in the international automotive market. VinFast’s strategic choices in response to the tariff challenges will be closely watched by investors and industry observers alike.
In other recent news, VinFast Auto Ltd. has reported significant developments that could interest investors. The company exceeded its fiscal year 2024 vehicle delivery expectations, delivering 97,399 vehicles, surpassing its revised guidance of 80,000. This achievement also outperformed estimates from Cantor Fitzgerald and Visible Alpha Consensus. In line with its growth strategy, VinFast plans to double its vehicle deliveries in fiscal year 2025. Additionally, the company has signed a Memorandum of Understanding with Motech Automotive Service Centers to expand its service network in the Philippines, aiming to accredit 63 service workshops as authorized VinFast centers.
Cantor Fitzgerald has maintained an Overweight rating on VinFast’s stock, with a $6.00 price target, citing the company’s strategic expansion plans and robust delivery numbers. VinFast’s recent $3.5 billion capital infusion is also seen as a significant boost, enhancing financial stability and extending its cash runway to mid-2026. The company is expanding its market reach, with plans to establish new facilities in India and Indonesia by the fourth quarter of 2025. In Canada, VinFast is positioning its VF (NYSE:VFC) 9 electric SUV to appeal to consumers with its competitive warranty and advanced features, reflecting the company’s commitment to addressing customer needs in the electric vehicle market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.