US LNG exports surge but will buyers in China turn up?
Investing.com - UBS upgraded Seres Group Co Ltd (601127:CH) stock rating from Neutral to Buy on Wednesday, while raising its price target to RMB170.00 from RMB130.00.
The upgrade follows Seres’s recent product launches, including the new M8 alongside M5 and M9 facelifts, which UBS notes have exceeded sales volume expectations. The company may introduce a new M7 built on its MF platform in the first half of 2025, according to UBS.
UBS projects Seres’s market share in the domestic mid- to high-tier passenger vehicle segment could expand from 7% in 2024 to 14% by 2027, driven by Huawei’s vertically-integrated hardware and software for smart cockpits and intelligent driving.
The investment bank also sees room for Seres’s per-vehicle profit to increase through economies of scale, benefits from investment in parts and components, and cost savings. UBS has increased its 2025-27 earnings estimates for Seres by 28-41%.
Seres shares currently trade at 16x/12x 2025E/26E price-to-earnings ratio, which UBS notes is below both the company’s historical mean and the peer-group average.
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