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Investing.com - UBS has upgraded SAIC Motor Corp Ltd. (SS:600104) from Sell to Buy, more than doubling its price target to RMB21.40 from RMB9.50.
The Chinese automaker, which peaked in 2018 as a joint venture pioneer in China’s auto industry, has experienced sharp volume and profit decreases from 2018 to 2024, leading to a valuation at 0.7x price-to-book value, a historical low point.
UBS analyst Wei Shen identified several potential positive developments expected in 2026, including a strong product pipeline from SAIC Volkswagen (ETR:VOWG_p) supported by efforts to integrate with China’s domestic supply chains.
The investment bank also noted that SAIC’s passenger vehicle division aims to break even after persistent losses through business reorganization and new partnerships, including one with Huawei.
Based on these anticipated improvements, UBS has increased its 2025-2027 earnings estimates for SAIC by 6-18%, with its 2026-2027 EPS forecasts now running 0-8% above Wind consensus estimates.
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