Investing.com-- Morgan Stanley (NYSE:MS) has raised its price target for Xiaomi (OTC:XIACF) Corp (HK:1810), citing strong growth in its electric vehicle (EV) and artificial intelligence of things (AIoT) divisions.
Morgan Stanley analysts raised PT to HK$45 from HK$35, while reiterating their “Overweight” rating.
Analysts highlighted Xiaomi’s EV business as a key driver, noting that the company delivered 135,000 units in 2024, surpassing expectations.
New orders for the SU7 have shown continuous volume growth, leading to a stronger-than-expected backlog with delivery wait times exceeding 20 weeks, the analysts said.
Morgan Stanley raised its 2025 shipment forecast to 310,000 units, up from the previous estimate of 260,000.
"Following the excellent track record in 2024, we are becoming more confident in Xiaomi EV's execution and believe the second EV (SUV) is highly likely to achieve success in 2025," analysts wrote.
Xiaomi’s AIoT and smartphone divisions are also positioned for positive growth. Morgan Stanley expects strong revenue momentum in home appliances, tablets, and wearables, following the company’s success in air conditioners, washing machines, and refrigerators in 2024.
Analysts see further room for premium smartphone growth, with improving margins driven by higher average selling prices (ASPs) and lower component costs.
Morgan Stanley concluded that Xiaomi remains its top pick in Greater China technology hardware, expecting continued tailwinds from EV expansion and AIoT innovation.