Goldman Raises Xiaomi Stock Target Amid EV Success

Goldman Sachs has increased its 12-month price target for Xiaomi Corp. to HK$27.5, up from HK$24.7, due to impressive progress in its electric vehicle (EV) business. The bank noted that Xiaomi is finding early success with its “Human x Car x Home” strategy, both in China and internationally.

Goldman Sachs reaffirmed its Buy rating on the stock, highlighting Xiaomi’s robust performance in the EV market, particularly with the increase in deliveries of the SU7 EV and the launch of new products. The bank has revised its delivery estimates for the SU7, anticipating over 225,000 units annually starting in 2025, thanks to strong order momentum and enhanced manufacturing capabilities at the company’s Phase I factory. Xiaomi’s management aims for 20,000 deliveries in October alone.

Furthermore, Goldman Sachs introduced projections for the upcoming SU7 Ultra model, which is set to debut at Nürburgring in October. It is expected to achieve sales of 4,000 units at an average selling price of RMB 800,000 in 2025, contributing 5% to the company’s EV revenue.

The second EV model from Xiaomi is also anticipated to launch sooner than previously expected, with projected sales of 40,000 units in 2025 and 210,000 units in 2026, representing 15% and 44% of the company’s EV revenue in those years, respectively.

Additionally, the impending release of the flagship Xiaomi 15 smartphone series later this month is expected to serve as another catalyst for growth. Goldman Sachs pointed out that the Xiaomi 14 series experienced an 80% increase in shipments compared to its predecessor and is optimistic about the Xiaomi 15 series performing well both domestically and internationally.

Goldman Sachs forecasts significant growth for Xiaomi’s EV segment, raising its valuation estimate to US$18.5 billion, up from US$12.7 billion. This projected success, coupled with favorable operating leverage, leads to strong profit forecasts, solidifying the bank’s positive outlook on Xiaomi’s future.