Investing.com - Chinese auto giant Geely Automobile Holdings Ltd (HK:0175) saw its share price plunged 11.3% to HK$10.24 by 1:06 AM ET (06:06 GMT) on Tuesday in Asia after it announced a sales volume target lower than market expectations.
Geely said in a statement that it expected to sell 1.51 million vehicles in 2019, merely 10,000 more vehicles than last year. Market watchers interpreted the low target as flat sales growth for the year, according to reports.
“Given the prevailing uncertainties in China’s passenger vehicle market, the Board preliminarily set the Group’s sales volume target for the year of 2019 at a conservative level of 1,510,000 units, in line with the sales volume achieved in 2018,” Geely said.
The announcement prompted multiple banks to downgrade their ratings and target prices for the company.
JP Morgan slashed Geely’s target price by 29% to HK$10, citing the widely unexpected move by Geely to lower its annual sales volume target.
Meanwhile, Credit Suisse (SIX:CSGN) cut the target price for the company by 45% to HK$11 and downgraded its ratings to “neutral” from “outperform.”