Stock Track | NEXTEER Plummets 7.43% Intraday After UBS Cuts Target Price Amid Profit Pressure Concerns

Stock Track
05/28

NEXTEER's stock price plummeted 7.43% during intraday trading on Thursday, following a research report from UBS that lowered its target price for the automotive supplier.

UBS maintained a 'Buy' rating on NEXTEER but reduced its target price from HK$8.60 to HK$7.60, representing an 11.6% downward revision. The adjustment came after management indicated that while revenue growth is expected to remain stable year-on-year for fiscal year 2026, rising commodity prices may pressure profit growth, particularly in the company's China business.

Despite positive developments including the initiation of two Steer-by-Wire projects this year, $1.6 billion in new orders secured in the first quarter, and expectations for more SbW and Electronic Mechanical Brake orders in 2026, investors focused on the reduced price target and profit margin concerns. The company is intensifying efforts in cost and capacity optimization to enhance profitability amid these challenges.

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