VinFast Auto Ltd (NASDAQ:VFS) is a global electric vehicle (EV) player in the making with market share gains on the horizon into 2024, according to Wedbush analysts.
In a note to clients, they initiated coverage on VinFast stock with an ‘Outperform’ rating and a $12 per share price target, implying more than 100% upside from current levels.
"We have seen the impressive VinFast operations in Vietnam firsthand and came away extremely impressed with its EV footprint," the analysts wrote.
They noted that VinFast Auto seeks to further drive the EV transformation by quickly rolling out quality, affordable products with a modern design, durable performance, and high-safety technology to create the best products and experiences for customers.
Analysts at Wedbush also believe that through advanced manufacturing capabilities across its industrial supplier park, VinFast is well-positioned to generate a durable product portfolio for electric transportation globally while creating a strong ecosystem to generate profitable growth over the coming years.
As well, with an anticipated $1.25 billion cash infusion directly from VinGroup chairman Pham Nhat Vuon, VinFast aims to expand into seven new countries the Asia-Pacific region over the next year and 50 new markets by the end of 2024, according to the analysts.
They added that VinFast is also in the process of establishing local manufacturing facilities in strategic markets, such as the US, India, Indonesia, and the company is looking to leverage its expansion and growth story.
Shares of VinFast Auto jumped 11% to $5.94 in midday trading on Tuesday but have fallen 84% year to date.
Contact Sean at sean@proactiveinvestors.com