Chery Automobile Gains Bull on Undervalued Shares

Dow Jones
07/09

0839 GMT - Chery Automobile gains a bull at Citi Research, noting its stock is likely undervalued from a short trading history and the Chinese auto sector likely hitting a historical cyclical bottom in July. Chery should be able to capture Japan and South Korean brands' overseas market share, given that the Chinese auto maker is looking to establish 830,000 overseas capacity in 2026, the Citi analysts say. The company's net profit could grow at a 16% compound annual growth rate in 2026-2028, and likely offers higher return on invested capital than peers, such as BYD and Geely Automobile, they add. Citi starts its coverage of Chery's shares with a buy rating and target price of 36.00 Hong Kong dollars. Shares closed 0.1% higher at HK$25.64.(megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

July 09, 2026 04:39 ET (08:39 GMT)

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