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Investing.com - Goldman Sachs downgraded Shenzhen Transsion Holdings Co Ltd (SS:688036) to Neutral from Buy on Tuesday, while lowering its price target to RMB99.00 from RMB110.00.
The investment bank cited Transsion’s slowing smartphone shipment growth as a key factor in its decision. After achieving a 35% CAGR from 2015-2021 and a 9% CAGR from 2021-2024, Transsion’s shipments declined 15% year-over-year in the first half of 2025.
Goldman Sachs noted that Transsion’s monthly shipments recovered to 10 million units in July following new model launches. This recovery supports the bank’s updated estimate of 20% year-over-year growth in the second half of 2025, or average monthly shipments of 10.6 million units compared to 7.5 million in the first half.
The stock currently trades at 14x 2026 estimated P/E with projected 25% net income growth in 2027, representing a 0.6x PEG ratio. Goldman Sachs considers this valuation largely in line with its target P/E multiple of 16x, suggesting positive factors are mostly priced in.
The revised RMB99 price target implies an 11% upside, which falls below Goldman Sachs’ average 25% upside for Buy-rated companies in Greater China Tech, leading to the downgrade despite the bank’s positive outlook on Transsion’s market share gains and product mix improvements.
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