VinFast Auto (VFS) is "well-positioned" to manage the current tariff challenges as it aims to boost demand in key Southeast Asian markets, such as Indonesia and the Philippines, while localizing its supply chain in these areas to drive long-term bottom-line growth, Wedbush said in a report Friday.
The Vietnamese automotive company reported better-than-expected fiscal Q4 revenue on Thursday, reaching $677.9 million, an increase of 70% year-over-year, driven by a sharp rise in electric vehicle and e-scooter deliveries, which jumped 143% and 65% respectively, Wedbush said, adding that its new VF3 and VF5 models drove over 60% of revenue
The company posted a wider-than-expected Q4 loss, reflecting heavy investment and accounting charges tied to its free charging program, with the non-GAAP gross margin falling to negative 79.1% from negative 24% in the previous quarter, largely due to a one-time charge for multiyear free charging incentives, Wedbush analysts said.
VinFast continues to expect to double its EV deliveries in fiscal 2025 "as it expects to continue its strong momentum," the report said.
Wedbush maintained an outperform rating on VinFast and lowered its price target to $6 from $8.
Shares of VinFast were down 4.4% in recent Friday trading.
Price: 3.18, Change: -0.15, Percent Change: -4.37
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.