Xiaomi Price Target Raised by Goldman Sachs

Goldman Sachs has increased its 12-month price target for Xiaomi Corp. to HK$27.5 from HK$24.7, noting strong performance in the electric vehicle (EV) sector.

Human x Car x Home Strategy

Xiaomi is reportedly making significant strides with its “Human x Car x Home” strategy in both domestic and international markets.

Buy Rating Reiterated

The investment bank reaffirmed its Buy rating, fueled by the company’s promising EV market performance, which includes ramping up deliveries of the SU7 EV and several upcoming product launches.

SU7 Deliveries and Estimates

Goldman has upgraded its SU7 delivery estimates for 2025 and beyond to over 225,000 units yearly, citing robust order momentum and enhanced manufacturing capacity at the Phase I factory. Management aims to achieve 20,000 deliveries in October.

SU7 Ultra Model

The bank has also provided estimates for the forthcoming SU7 Ultra model, which is set to launch at the Nürburgring in October. Sales projections stand at 4,000 units, with an average price of RMB 800,000 in 2025, contributing 5% to total EV revenue.

Upcoming Second EV Model

Xiaomi’s second EV model is anticipated to enter the market sooner than expected, with sales forecasts of 40,000 units in 2025 and 210,000 units in 2026, constituting 15% and 44% of EV revenue for those years.

New Smartphone Launch

The scheduled launch of the Xiaomi 15 smartphone series is also forecasted to drive growth. Goldman’s analysis noted that the Xiaomi 14 series saw an 80% increase in shipments over its predecessor, and similar strong performance is expected for the Xiaomi 15 series both domestically and abroad.

Strong Future Projections

Goldman Sachs anticipates significant growth in Xiaomi’s EV business, estimating a valuation of US$18.5 billion, up from US$12.7 billion, which along with favorable operating leverage, supports optimistic profit forecasts and a positive outlook for Xiaomi’s future.