Morgan Stanley released a research report stating that it maintains a "shareholding" rating and expects more positive developments for Xiaomi in the next 12 months, so it sets a new target price of HKD 26. $XIAOMI-W (01810.HK)$ "Shareholding" rating is maintained in the research report released by Morgan Stanley, and a new target price of HKD 26 is set as it is expected that Xiaomi will have more positive developments in the next 12 months.

The report states that the group's performance in electric vehicles and artificial intelligence internet of things exceeded expectations in the first half of this year. The bank believes this can support the group's positive growth prospects. If the gross margin of smart phones hits bottom in the third quarter, margin recovery could be another positive catalyst from the second quarter to 2025.

Morgan Stanley stated that it has raised Xiaomi Corporation's revenue forecast for the next two years by 3% and 2% respectively, while assuming an increase of 0.7 and 1.1 percentage points for the gross margin rate in 2024-2025. Earnings forecasts for 2024-2025 are also increased by 18% and 13% respectively.