[ET Net News Agency, 7 January 2020] Nomura raised its target price for Geely
Automobile (00175) to HK$17.9 from HK$15.9 and maintained its "buy" rating.
The research house lifted its FY2020/21 EPS forecasts by 13% each to reflect 2% higher
sales volume assumptions (mainly from Lynk) and 1pp rise in GP margins as sales continue
to recover with an improving product mix.
While Nomura's new 2020 sales volume estimate of 1.48mn units (+9%) is higher than
Geely's own preliminary guidance of 1.41mn (+4%), management acknowledged that its target
is "conservative." (KL)