[ET Net News Agency, 21 November 2019] Goldman Sachs lowered its target price for Great
Wall Motor Company (GWM)(02333) to HK$3.51 from HK$3.62 and maintained its "sell" rating.
The research house said GWM's above-expectation 3Q results announcement on 25 October
has pushed its share price up by 14%, which reflects optimism on holiday demand (sales
peaks in December/January) and utilization improvement.
Separately, China Passenger Car Association (CPCA) expects a 1% growth for China auto
volumes sales in 2020, while China Automobile Dealers Association (CADA) expects a 10%
decline. Goldman thinks these estimates imply mounting downsides to GWM's consensus of 12%
revenue growth in 2020.
Goldman lowered its 2020/21 EPS forecasts by 3% to reflect the latest retail trends.
(KL)