Geely Auto (SEHK:175): Assessing Valuation After Strong Shareholder Returns and Revenue Growth

Geely Automobile Holdings (SEHK:175) has quietly outperformed over the past year, with shares up more than 42% and revenue growth continuing at a steady pace. Investors might be weighing what this track record could mean moving forward.

See our latest analysis for Geely Automobile Holdings.

Momentum has been building for Geely Automobile Holdings, with a 38% year-to-date share price return and a 42% total shareholder return over the past year. While recent weeks have seen healthy gains and some swings, the bigger picture is clear: long-term shareholders are seeing standout results as the company’s growth story continues to attract attention.

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The key question now is whether Geely Automobile Holdings remains undervalued despite its recent gains, or if the market has already factored in the company’s future growth prospects and strong momentum. Is there still room for investors to benefit, or has the opportunity been fully priced in?

Most Popular Narrative: 26% Undervalued

The most followed narrative puts Geely’s fair value at HK$26.28 per share, well above the last close of HK$19.43. This sharp gap sets the tone for the latest conviction on where the stock could head next.

The analysts have a consensus price target of HK$26.275 for Geely Automobile Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of HK$42.17, and the most bearish reporting a price target of just HK$20.07.

Read the complete narrative.

What is fueling this bullish view? The narrative is betting on aggressive revenue expansion, improving margins, and a substantial earnings boost that could justify a higher price multiple. The real surprise lies in the bold financial leaps baked into this forecast. Unpack the key assumptions driving this narrative’s eye-catching fair value and see what could upend the status quo.

Result: Fair Value of $26.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, fierce competition in global NEV markets and uncertainty around autonomous driving success could both pressure Geely’s margins and challenge the current bullish outlook.

Find out about the key risks to this Geely Automobile Holdings narrative.

Build Your Own Geely Automobile Holdings Narrative

If you have a different perspective or want to dig into the numbers yourself, you can shape your own view in just a few minutes, or Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Geely Automobile Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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