0900 GMT - Investors might be too optimistic about Xiaomi's EV business, Morningstar analyst Dan Baker writes in a note. The company's shares look overvalued, with the current P/E ratio at around 52X well above its historical range, Baker says. He thinks current valuations reflect an overly optimistic view of the EV business, they say. Morningstar forecasts five-year average revenue growth of 15% for Xiaomi, and projects its EV business to sell around 570,000 cars per year by 2029. Morningstar estimates the company's EV gross margin to rise to 25% by 2028. It raises its fair value estimate on the stock by 30% to HK$30.00. Shares last closed at HK$56.50.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
March 20, 2025 05:00 ET (09:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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