Morgan Stanley Reiterates Overweight Rating on Zoomlion, Raises Target Price to HK$9.8

Stock News
May 04

Morgan Stanley has issued a research report maintaining an "Overweight" rating on Zoomlion Heavy Industry Science And Technology Co.,Ltd. (01157) and increasing its target price from HK$9.1 to HK$9.8. The firm believes that Zoomlion is positioned to be a key beneficiary of the global upcycle in construction machinery, particularly as demand for non-excavator machinery is expected to rise further in the later stages of the cycle. Improvements in the proportion of overseas revenue, the near-completion of its international sales network, and enhanced capacity utilization are projected to support continued expansion of its operating profit margin. Morgan Stanley anticipates that the domestic construction machinery market will sustain its upward trajectory from 2026 to 2028, with Zoomlion's significant exposure to the non-excavator segment offering particular advantages. In overseas markets, with sales channels and production capacity largely established, the company's international sales are expected to achieve moderate growth during the 2026–2028 period.

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