On December 22, Beijing time, Deutsche Bank released a research report initiating coverage on Uxin (UXIN.US), a leading used-car retailer in China, assigning a "Buy" rating with a 12-month target price of $4.5, implying approximately 31% upside potential from the current share price.

The report highlights the significant growth potential of China's used-car market, noting that its penetration rate remains substantially lower than mature markets like the U.S. The industry is accelerating its transition toward standardized, large-scale retail operations, with improving market conditions favoring leading dealers.

Uxin has established systemic advantages through its pioneering offline "super store" model, featuring intelligent pricing, efficient inventory turnover, and a one-stop car-buying experience. Deutsche Bank expects the company's profitability to strengthen as its store network expands and economies of scale materialize, supporting robust medium-to-long-term growth prospects.

Projecting rapid expansion of Uxin’s warehouse-style stores and same-store sales growth, Deutsche Bank forecasts a 75% compound annual growth rate (CAGR) for total transactions and a 71% revenue CAGR from 2025 to 2028, with the company likely achieving overall profitability by 2028.

Based on these factors, Deutsche Bank set the $4.5 target price, reflecting ~31% upside from current levels.