Morgan Stanley Adjusts NEXTEER Target Price to HK$6.1, Cuts Profit Forecasts for Current and Next Year by 5-10%

Stock News
07/22

Morgan Stanley has released a research report adjusting its outlook for NEXTEER (01316). The firm has reduced its profit forecasts for the company for 2026 and 2027 by 5-10%.

This revision reflects weaker-than-anticipated automotive production in China and greater-than-expected pressure on gross margins due to significant increases in raw material costs.

Consequently, Morgan Stanley has lowered its target price for NEXTEER from HK$6.3 to HK$6.1, while maintaining an "Equal-weight" rating on the stock.

The report projects that NEXTEER will achieve a 7% year-on-year revenue growth in 2026.

A key variable for the company's 2026 gross margin will be its ability to successfully pass on rising costs and secure compensation from OEM partners.

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