HSBC initiates coverage of technology and electric vehicle company Xiaomi with a Buy rating and a target price of 33.20 Hong Kong dollars, according to an analysis.
The bank sees 2026 as a transitional year in which high memory costs weigh on the mobile business, but expects margins to recover next year and continued strong growth in electric vehicles.
HSBC forecasts 28 percent annual growth in adjusted net profit in 2026-2028. The target price is based on a P/E ratio of 25 for 2027, derived from peer companies’ average PEG ratio of around 0.9.
