[ET Net News Agency, 3 December 2020] BNP Paribas raised its fair value for Xiaomi
Corporation (01810) to HK$14 from HK$13.55 and maintained its "reduce" rating.
The research house said the hike was due to the business raising money at a price well
above BNP's fair value. It noted that the description of the potential use of funds is
quite vague, but the company has an opportunity to take global market share with the
issues facing Huawei around semiconductor supply for its smartphone business.
A forced demise of a strong competitor doesn't happen very often and other smartphone
manufacturers are also eyeing this opportunity, so building a war chest at this time makes
sense, BNP said. (KL)