HK Movers｜GAC GROUP Surged 8% As Morgan Stanley Rated It As Overweight

GAC GROUP surged 8% as Morgan Stanley rated it as overweight.

Morgan Stanley attributed this rally to three recent tailwinds: the management's latest statement on mass production of vehicles equipped with all-solid-state batteries by 2026, much more information disclosed on the brand Qijing under the collaboration with Huawei, and the announcement of marketing cooperation with JD-SW.

Although these three tailwinds will take time to scale and their substantial contribution to earnings is limited in the short term, Morgan Stanley still believes that GAC GROUP's current valuation remains undervalued, considering the carmaker's latest business developments and retention of a 5.7% market share this year.

Morgan Stanley gave GAC GROUP an Overweight rating and a target price of HKD3.9.