Written by Cláudio Afonso | LinkedIn | X
Goldman Sachs analyst Tina Hou initiated coverage of Zeekr shares on Tuesday setting a Buy rating and a price target of $34, implying 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.
Despite this, the analyst expects Zeekr to outperform its competitors Nio and Xpeng achieving an annual growth rate of 56 percent through 2026.
In the research note, Hou highlights several factors contributing to Zeekr‘s potential success, including the successful relaunch of Zeekr 001, the start of deliveries for Zeekr 007, and upcoming model launches. These initiatives are expected to propel Zeekr beyond the 200,000-unit milestone as early as 2024, according to the firm.
Goldman Sachs remains optimistic about Zeekr‘s competitive positioning, particularly due to its adoption of an asset-light manufacturing model, leveraging its parent company’s factory capacity.
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 will report its first quarter financial results before the U.S. markets open on June 11 followed by a conference call.
Zeekr has recently became the fourth US-listed electric vehicle manufacturer from China after Polestar, Nio, and Xpeng.
Established in China back in 2021, the company needed only three years to debut in the New York Stock Exchange as it plans to expansion in six to eight European countries this year.
Last year, Zeekr reported $7.28 billion in total revenue — an increase of 62 percent year over year — while yearly losses accounted for $1.16 billion. The brand delivered 118,685 vehicles in 2023, up 64.98 percent from the previous year.
Available in Sweden and the Netherlands, the company is also planning the arrival to Latin American countries.
Written by Cláudio Afonso | LinkedIn | X
