[ET Net News Agency, 9 June 2021] Morgan Stanley lifted its target price for BYD
Company Limited (01211) to HK$132 from HK$126 but downgraded its "buy" rating to
"underweight" from "equal-weight".
Despite BYD's leading position in China's EV space, the research house said market
expectations on its operational breakthrough look lofty despite looming execution
challenges.
Morgan said current stock price may just discount soft 1Q results and factor in stronger
2H upticks, but it sees lingering operational headwinds given (1) vertical integration
curbs BYD's pass-through flexibility, (2) abundant external sales opportunities, but it
won't be easy, and (3) plug-in hybrid vehicles the bright spot, yet supply and competition
risks persist. (KL)