Morgan Stanley has raised its earnings forecast for Fuyao Glass in 2024/25 by 3% and 5%.
According to a research report released by Morgan Stanley, Fuyao Glass (03606) maintains their “market perform” rating and incorporates Q1 2024 financial data into their model, raising the forecasted earnings per share by 3% and 5% for 2024/25 to reflect the increase in gross margin brought by the improvement of product structure and stable investment costs, and raises the target price by 8.3% from HK$36 to HK$39.
In addition, Morgan Stanley raised Fuyao Glass' most optimistic target price by 9.3% from HK$54 to HK$59, mainly reflecting the potential resumption of normal operations of its business in Russia once geopolitical conflicts are resolved. The most pessimistic target price has also increased by 10% from HK$17 to HK$18.7, mainly reflecting the possibility of deteriorating geopolitical conflicts, the impact on the company's factories in Russia, and the delay of business in Europe.