New optimism emerges
“We have seen VinFast’s scale of operations in Vietnam and are impressed with their footprint in the electric vehicle market,” said Dan Ives, CEO of Wedbush Securities, a leading technology analyst on Wall Street, explaining why he and his colleagues put VFS on the “buy” list.
After officially listing on the NASDAQ exchange in August via SPAC, VinFast Auto’s VFS stock is one of the most notable codes in the global electric vehicle industry. According to analyst Andres Sheppard of Cantor Fitzgerald, a leading US financial advisory organization, VinFast stock has many positive points.
“We believe VinFast benefits from more affordable electric vehicles, manufactured in Vietnam with a high localization rate and the financial and brand support of Vingroup,” Mr. Sheppard said in a recent report.
Sheppard cited promising figures to support his assertion. Accordingly, electric vehicle manufacturer VinFast is operating in Asian, European and North American markets. VinFast currently has four electric car models on the road, including the VF 5 Plus small electric SUV with an average selling price of $22,800 and the VF e34 model with a price of about $34,860 sold in Vietnam.
The company also produces the VF 8, a D-SUV aimed at customers in the US, Canada, Europe and Vietnam with prices starting at $46,000, and the most expensive model, the high-end E-SUV VF 9 with three rows of seats and seven seats, priced from $83,000.
In addition, the company is developing three other models with expected prices ranging from $13,500 to $37,500. Thus, next year, VinFast is expected to have seven different models in the Asian, European and North American markets.
“More importantly, we believe that at these prices, VinFast cars are more affordable than competitors. This will help the company increase its market share globally and in the US,” Cantor Fitzgerald experts believe.
All VinFast vehicles are now manufactured in Vietnam, where it has a modern complex with a capacity of 300,000 vehicles/year. Sheppard believes this is a big advantage for VinFast.
“With its mastery of manufacturing technology, VinFast has advantages from large scale of operations, highly automated production facilities, lower production costs, favorable tax policies, cheaper labor and operating costs, as well as established trade agreements,” he analyzed.
In addition to its factory in Vietnam, VinFast is also on the path to expanding production internationally. According to the plan, VinFast's new factory in North Carolina will be operational from mid-2025. That will help add 150,000 cars/year, bringing the company's total capacity to 450,000 cars/year.
From all these advantages, Sheppard ranks VinFast shares in the "Overweight" group, meaning "Should buy".
Opportunity for price increase
“Should buy” is also the assessment of Mr. Dan Ives, analyst of financial company Wedbush Securities, about VinFast shares before the trading session on Tuesday (November 21).
“We have seen first-hand the scale of VinFast’s operations in Vietnam and are impressed with their footprint in the electric vehicle market,” said Mr. Ives.
According to information from VinFast, the company is expected to deliver about 45,000 cars globally in 2023. The veteran expert predicts that VinFast's revenue will increase from 1.4 billion USD in 2023 to 5.5 billion USD in 2025. At the same time, losses will decrease from 1.7 billion USD in 2023 to 1.5 billion USD in 2025.
VFS shares have been performing positively recently. Before the trading session on Tuesday (November 21), the code increased by nearly 4%, then continued to increase by 10.8% to $5.99/share at the end of the session, while the S&P 500 and Nasdaq Composite decreased by about 0.2% and 0.7%, respectively. On November 24, VFS maintained its green color and closed the session at $6.56/share, up 3.8%.
Currently, there are 3 analysts covering VinFast shares, all of whom have rated it “Buy.” Ives is optimistic that investors should prepare for the stock to rise following the new positive reviews.
(According to Tipranks, Barrons)
Cantor Fitzgerald is a leading international financial services organization with a network of more than 30 offices around the world. Across all of its businesses, Cantor Fitzgerald is recognized as a leader in developing innovative technologies to expand market reach and help clients achieve their most important financial and strategic goals. Daniel Ives , CEO of Wedbush Securities (USA), is currently a leading securities analyst in the Technology sector on Wall Street. He is also a prestigious speaker at many events in the US, Europe and Asia; regularly appears on major TV channels such as CNBC, Bloomberg, BBC, NBC, CBS, ABC, CNN and Fox News... |
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