[ET Net News Agency, 11 February 2020] Credit Suisse lifted its target price for Geely
Automobile Holdings (00175) to HK$18 from HK$15.3 and upgraded its rating "outperform"
from "neutral".
The research house said the possible merger of Geely with Volvo Cars would assure future
technology sharing, potential cost reduction, and a stronger balance sheet.
Credit Suisse noted that Volvo Cars delivered a strong 2019 result. More importantly,
with a historically net cash flow of SEK10.7bn (or US$1.11bn), Volvo Cars has resulted in
a net cash position of SEK25.2bn (or US$2.61bn).
Credit Suisse raised its 2020-21 profit estimates by 1.6% with a lower cost assumption.
(KL)