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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.