Stock Track | Geely Auto Shares Surge on Perceived Undervaluation Despite Negative Outlook

Stock Track
2024-11-08

Shares of Geely Automobile Holdings Limited (HKG:175), one of China's leading automakers, soared by 7.81% on Thursday, as investors reacted to a recent analysis suggesting the company's stock is currently undervalued despite a negative profit growth outlook.

According to a report by Simply Wall St, Geely Auto's intrinsic value is estimated to be around HK$23.89 per share, significantly higher than its current trading price of HK$14.34. This valuation discrepancy has sparked investor interest, driving the stock's recent surge.

However, the report also highlights concerns over Geely Auto's near-term growth prospects, with a negative profit growth of -6.8% expected over the next couple of years. This negative outlook adds uncertainty and higher risk for investors, potentially tempering the stock's upward momentum.

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