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On Monday, Jefferies analyst Johnson Wan upgraded Eve Energy Co Ltd (300014:CH) stock from Hold to Buy and increased the price target to RMB55.00, up from the previous RMB50.00. The adjustment comes after the company reported its first-quarter results for 2025, which showed a slight miss in consensus expectations. This was attributed to lower other gains and increased accounts receivable impairment and financing costs.
Despite the miss, Eve Energy’s electric vehicle (EV) and energy storage system (ESS) battery shipments saw a significant year-over-year growth of 50-80% in the first quarter of 2025. The management team at Eve Energy expressed optimism about the company’s future, projecting a 100% growth in EV and ESS battery shipments for the full year 2025, along with an improvement in profitability.
Wan’s decision to upgrade the stock to Buy is based on the positive business growth outlook for Eve Energy in 2025. The company’s strong performance in battery shipments is a key factor in this optimistic assessment.
The analyst’s commentary highlighted the main reasons for the upgraded rating and increased price target. Wan noted, "1Q25 results slightly missed consensus due to lower other gains and higher AR impairment and financing costs. However, its EV and ESS battery shipments grew over 50-80% yoy in 1Q25. Mgmt is optimistic about achieving 100% EV and ESS battery shipment growth in 2025 with improved profitability. Upgrade to BUY due to a better biz growth outlook in 2025."
Investors and market watchers will be keeping a close eye on Eve Energy as the company strives to meet its ambitious shipment and profitability goals for the year. The upgrade by Jefferies reflects a confidence in the company’s ability to capitalize on the growing demand for EV and ESS batteries.
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