-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our target price to USD20 from USD22, implying a 2026 P/S of 1.3x, a 57% discount to global EV peers' 3.0x average, reflecting margin pressure from AI investments and its second-tier market position. We lower 2026 EPADS to CNY0.33 from CNY0.86 and introduce 2027 EPADS at CNY1.00. We project revenue growth moderating to 20.5%-21% p.a. for 2026 and 2027, largely due to increased vehicle deliveries and new model launches, but declining average selling prices from intensifying competition (BYD, Geely), product mix dilution, and lower subsidies will pressure growth. Improved operating leverage and scale efficiency should support our projected modest margin improvement, but rising cost inflation and elevated R&D investment in AI will limit margin expansion potential. While Q4 2025 achieved record 21.3% gross margin and first quarterly profit, we remain cautious on sustaining profitability through 2026 given fragile margins amid an investment upcycle and intensifying EV competition in China.