Erste Group downgrades BYD stock rating to Hold on pricing pressure

Published 05/09/2025, 11:42
Erste Group downgrades BYD stock rating to Hold on pricing pressure

Investing.com - Erste Group has downgraded BYD Co Ltd (HK:1211) (OTC:BYDDF) from Buy to Hold as intensifying competition in the automotive sector weighs on the electric vehicle maker’s pricing power. The company, which generated over $118 billion in revenue last year with 31.7% growth, maintains strong financial health according to InvestingPro analysis.

The Hong Kong-listed company, which has established itself as the global leader in battery electric car manufacturing, has been facing mounting competitive pressures throughout 2025, according to Erste Group analyst Stephan Lingnau.

BYD possesses extensive expertise in battery technology for electric vehicles and maintains a broad portfolio of attractively priced vehicles, distinguishing itself from competitors in the market.

Despite these advantages, the average price of BYD vehicles sold in Europe has declined continuously every quarter over the past two years, a trend that is negatively impacting the company’s profitability.

Erste Group noted that there appears to be no immediate end to this negative pricing trend, prompting the downgrade from its previous Buy recommendation.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.