About 20 brokerages have raised their stock-price targets on Xiaomi in the wake of the second quarter’s report, according to data compiled by Bloomberg.
The market’s turnaround comes after Xiaomi was one of the few mainland technology giants whose shares persistently traded below its initial public offering price. From the high just days after its debut, Xiaomi’s stock fell 61% at 2019’s bottom amid US-China trade tensions and a global smartphone market slowdown ahead of the launch of 5G service. The company has been in a tough battle for market share with Huawei and smaller players Oppo and Vivo.
When founder Lei Jun went public in July 2018, he said he wanted first-day buyers to double their returns.
Morgan Stanley analysts wrote in a note last week that Huawei having to increasingly use third-party chips “will reduce its competitive advantage in phones and give Xiaomi an opportunity to gain share in China.” Xiaomi could increase market share from Huawei not just in China but also Europe and Latin America, said Citigroup Inc. analysts including Andre Lin on Thursday.
