Written by Cláudio Afonso | LinkedIn | X
Bank of America (BofA) analyst Ming Hsun Lee has initiated coverage of Zeekr, a high-end electric vehicle (EV) manufacturer from the Geely Group, with a Buy rating and a price target of $35.
In the research note released on Tuesday, Lee projects that Zeekr will achieve an annual revenue growth rate of 27 percent through 2024 while anticipating the company turning profitable by 2026 driven by an expected annual volume growth of 31 percent.
The EV maker will report its first quarter financial results before the U.S. markets open on June 11 followed by a conference call.
BofA believes that Zeekr has a robust product pipeline, strong customer value proposition, margin improvements, and enhanced operating leverage due to scale effects and synergies with Geely Group, its parent company.
In his report, Lee highlighted Zeekr as a market share winner in the premium electric segment thanks to the company’s compelling model offerings.
Earlier today, Goldman Sachs also initiated coverage of Zeekr shares, assigning a Buy rating and a price target of $34. This suggests a potential upside of 32.7 percent based on the last closing price.
The brand announced on Saturday that it has delivered 18,616 vehicles in May, representing an increase of 115 percent year over year and a new monthly record.
Last year, Zeekr delivered 118,685 electric vehicles, up 64.98 percent year-on-year, and aims to double its output to 230,000 units this year. Hou predicts that Geely’s premium brand may miss its delivery target by 15,000 units, projecting a delivery figure of 215,000 electric vehicles.
Zeekr’s result in May marked the fourth consecutive month of growth in terms of deliveries for the brand after having delivered 13 thousand units in March and over 16 thousand in April.
Zeekr has recently became the fourth US-listed electric vehicle manufacturer from China after Polestar, Nio, and Xpeng.
Written by Cláudio Afonso | LinkedIn | X
