Jefferies maintains Buy on Geely stock, HK$20.00 target

Published 03/03/2025, 20:08
Jefferies maintains Buy on Geely stock, HK$20.00 target

On Monday, Geely Automotive Holdings Ltd. (175:HK) (OTC: GELYF (OTC:GELYF)), a prominent player in the global automotive industry with impressive year-to-date returns of 21%, received a reiteration of a Buy rating and a price target of HK$20.00 from Jefferies. The firm’s analyst, Xiaoyi Lei, provided insights following Geely’s AI Day event held in Hainan on March 3. According to InvestingPro data, the company maintains strong financial health and is currently trading below its Fair Value. Lei highlighted several key developments from the event, emphasizing the company’s advancements in smart driving technology and pricing strategy adjustments.

Geely unveiled its "Qianli Haohan" smart driving system, which features five levels of capability and is expected to be integrated across the automaker’s range of models, regardless of price. This system represents Geely’s commitment to making advanced driving technology accessible to a broader consumer base.

Additionally, Geely announced its plans to become the first company to mass-produce a Level 3 (L3) autonomous driving system, known as H9. This system is notable for its use of dual ThorU chips and a multi-LiDAR redundant architecture, showcasing Geely’s push towards the forefront of autonomous vehicle technology.

In a strategic move to enhance its market competitiveness, Geely has also reduced the prices of some of its existing Galaxy models by RMB 3,000 to RMB 6,000. Alongside the price cuts, the company introduced new models, including the E8 and the Xingyao 8, further expanding its product lineup.

These announcements reflect Geely’s ongoing efforts to innovate within the automotive industry and adjust its strategies to meet consumer demand and market conditions. The reaffirmed Buy rating and price target from Jefferies suggest confidence in Geely’s direction and potential for growth. With a P/E ratio of 11 and revenue growth of 33% in the last twelve months, Geely’s financial metrics support this optimistic outlook. InvestingPro subscribers can access 10+ additional ProTips and detailed metrics ahead of the company’s upcoming earnings report on March 20, 2025.

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

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