Citi opens 90-day catalyst watch on BYD

This post was originally published on this site

Additionally, the estimated net profit per vehicle for the second quarter of 2023 is expected to be RMB 7.5-8k, which is an improvement from the RMB 7-7.5k recorded in the first quarter of 2023. Analysts anticipate a monthly improvement in delivery going forward and a continued acceleration in exports for BYD.

Citi Research maintained BYD as a sector top pick as analysts wrote in a note, “We expect 24E-26E BYD total earnings and sales can still grow at above 20% CAGR with the support from export growth, and sequential ROIC expansion due to revenue mix upgrade from faster mid-high end car sales, which means the stock is trading below 1x 2024 PEG (23E PER 24.3x, 24E 16.2x) with attractive valuation risk-reward with the near-term catalysts.”