Citi has released a research report maintaining a Buy rating on BYD Company Limited (HKEX: 01211), with a target price of HK$142. This valuation is based on a 1.2 times price-to-earnings growth (PEG) ratio for 2026 and a 25% compound annual growth rate (CAGR) in earnings per share from 2026 to 2028, which translates to 30 times the forecast price-to-earnings (P/E) ratio for 2026 and 25 times for 2027.

The bank believes that the gap between the stock price and fund flow positions has narrowed significantly, setting the stage for a potential reversal in July. Citi notes that the "BYD weighted fundamental index" for July stands at +0.07, indicating that the company's fundamentals remain positive.

Looking ahead, Citi expects export momentum to continue into the third quarter, and with solid second-quarter results, this should help alleviate market concerns about earnings visibility in the second half of the year. This, in turn, will support BYD Company Limited in gradually achieving a re-rating of its earnings through market consolidation and a focused export strategy.