Key Takeaways:
- Goldman Sachs reiterated Buy on Xiaomi with a HKD40 price target
- Third EV series SKYNOMAD expected MIIT filing by mid-July 2026
- Stock down 42% YTD; 3Q26 seen as potential inflection point
Back
Goldman Sachs reiterates Xiaomi buy at HKD40 as EV, AI catalysts loom
Goldman Sachs reiterated its Buy rating on Xiaomi Corp. with a HKD40 price target, citing the upcoming third electric vehicle series and emerging artificial intelligence monetization as catalysts.
Xiaomi enters a catalyst-rich period in the coming months, with progress in Smart EV and AI becoming the core focus for investors, Goldman Sachs said in a research report.
The broker maintained its delivery forecasts of 110,000 units for the third EV series in 2026 and 240,000 units in 2027. The new series, potentially named SKYNOMAD, is expected to be an extended-range large sport utility vehicle with a starting price around RMB200,000. Specifications may be disclosed in Ministry of Industry and Information Technology filings as early as mid-July.
Xiaomi shares have fallen 42 percent year to date amid concerns over rising bill of materials costs, weak domestic consumption and unfavorable fund flows. Goldman Sachs said the third quarter of 2026 could mark a potential inflection point in both market sentiment and financial performance, adding that the stock's valuation has largely bottomed out.
The AI monetization strategy is gradually taking shape, covering system-level AI assistants for consumers, code and productivity tools for enterprises, as well as AIoT ecosystems and smart driving applications in the physical world.
The HKD40 target implies significant upside from current levels if the SKYNOMAD launch and AI strategy gain traction. Investors will watch for MIIT filing details in mid-July as the next key catalyst.
This article is for informational purposes only and does not constitute investment advice.
