SAIC Motor stock rating upgraded by BofA on Huawei partnership potential

Published 29/08/2025, 08:36
SAIC Motor stock rating upgraded by BofA on Huawei partnership potential

Investing.com - BofA Securities has upgraded SAIC Motor Corp Ltd. (SS:600104) from Underperform to Buy, while significantly raising its price target to RMB27.00 from RMB15.30.

The upgrade is primarily driven by expectations for the automaker’s new electric vehicle brand Shangjie, jointly developed with Huawei, which BofA anticipates will become popular and deliver strong sales volumes.

BofA also expects SAIC’s joint ventures with Volkswagen and General Motors to stabilize by 2026 amid what it describes as an "anti-involution environment," contributing to the more positive outlook.

The firm has raised its volume sales forecasts for SAIC by 1% for 2025, 5% for 2026, and 10% for 2027, mainly reflecting stronger projected sales from the Shangjie brand.

BofA has changed its valuation method from an average of DCF and P/E to a sum-of-the-parts approach, applying a 0.7x price-to-book ratio for SAIC’s legacy business and a 1.3x price-to-sales ratio for Shangjie’s 2026 estimated sales.

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