Credit Suisse raised its target price for Great Wall Motor (02333) to HK$19.2 from HK$17.5 and maintained its "outperform" rating.
The research house derives the target price from a DCF (discounted cash flow)-based methodology, implying 18.5x 2021E P/E (price-to-earnings). Great Wall's strong balance sheet cannot be fully exhibited via simple multiples, and it thus prefers DCF to value the company.
It rates the stock "outperform" due to the company's decent mid-term growth from 2021 after the new product architecture debut, which will speed up its new product launch plan at low cost.