[ET Net News Agency, 6 August 2020] Nomura lifted its target price for Xiaomi
Corporation (01810) to HK$18 from HK$15 and maintained its "buy" rating.
The research house in May advised investors to accumulate Xiaomi to hedge the risks from
upstream semi correction and tech war, and its view remains unchanged.
Nomura expects Xiaomi to adroitly manage the considerable competition and uncertainty in
overseas smartphone (SP) markets, particularly in India. It thinks Xiaomi is still
targeting to grow its SP business in 2020 with market share gain.
However, due to the overall SP market leaning towards mid to low-end segment this year,
with some rising cost from the India market due to supply disruption, GPM of the SP
business could be slightly weaker in 2H. Nomura maintained its 2020-21 forecasts mostly
unchanged. (KL)