(Bloomberg) — Analysts at JPMorgan Chase & Co. raised their price targets for BYD Co. by more than 80%, based on expectations that the Chinese automaker will deliver 6 million vehicles globally over the next two years.
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The bank, which now has the highest price targets for BYD shares in Hong Kong and Shenzhen based on data compiled by Bloomberg, raised them to 475 Hong Kong dollars and 440 yuan, respectively, maintaining an overweight. She estimates that BYD will deliver about 1.5 million units in international markets and three times as many domestically by 2026. The company has sold about 3 million vehicles in 2023.
Shares rose as much as 2.6% to HK$241.40 during early trading in Hong Kong on Wednesday.
BYD focused on boosting international sales and localization efforts while engaging in a brutal price war in its Chinese home market. Its shares have defied heavy losses in electric vehicle stocks and have gained about 12% this year in Hong Kong, while those of smaller peers Li Auto Inc. and XPeng Inc. have each fallen more than 45%.
“BYD could see a reclassification in the next 1 to 2 years, driven by its global expansion and the potential growing opportunity for plug-in hybrid electric vehicles,” JPMorgan analysts including Nick Lai wrote in a note.
The company will begin exporting competitively priced plug-in hybrid EV products such as the Seal U SUV in Europe starting in July and the Shark in Mexico starting in June, according to JPMorgan.
Read: BYD plays winning hand in China’s EV market with hybrid models
By 2026, BYD will also mark an important milestone for its global ambitions, as four of its overseas production bases or assembly lines in Thailand, Indonesia, Brazil and Hungary are expected to be completed and expanded, the analysts wrote.
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