UBS lifts BYD stock price target to HK$540 on sales outlook

Published 24/05/2025, 13:02
UBS lifts BYD stock price target to HK$540 on sales outlook

On Friday, UBS analyst Paul Gong increased the price target for BYD Co Ltd (OTC:BYDDY) (1211:HK) (OTC:BYDDF), an automotive and electronics manufacturer, to HK$540.00, up from the previous HK$450.00, while reiterating a Buy rating on the stock. The adjustment reflects the analyst’s optimism about the company’s growing overseas sales and market potential.

Gong’s confidence in BYD (SZ:002594) is bolstered by recent findings from the UBS Evidence Lab Consumer Survey conducted in 2025, which showed a rise in BYD’s acceptance among European consumers. Gong cited the opportunities arising from what he perceives as Tesla (NASDAQ:TSLA)’s aging product lineup and diminishing brand image, suggesting that BYD is well-positioned to increase its global market share.

The analyst also anticipates that a higher contribution from exports will lead to improved margins for BYD. As a result, Gong has raised the estimated earnings per share (EPS) for BYD for the years 2025 to 2027 by 6-10%, which is 5-29% higher than the consensus estimates. This revision is intended to reflect a more positive outlook on BYD’s international expansion efforts.

BYD’s stock price target increase by UBS points to the firm’s expectation of the company’s continued growth and success in the global market. Gong’s analysis suggests that BYD could benefit from the current market dynamics and consumer trends, especially in Europe.

Investors and market watchers may see the revised price target and maintained Buy rating as a sign of BYD’s potential to thrive in the competitive automotive industry, particularly in the electric vehicle (EV) segment. The company’s strategic moves to capitalize on overseas markets and enhance profitability are key factors in UBS’s positive assessment.

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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