JPMorgan Starts Midea at Overweight With 105 Yuan Target as It Sees 20% Upside
Updated
Updated · CNBC · Jun 14
JPMorgan Starts Midea at Overweight With 105 Yuan Target as It Sees 20% Upside
1 articles · Updated · CNBC · Jun 14
Summary
105 yuan is JPMorgan’s new target on Midea’s Shenzhen-listed shares, implying more than 20% upside from Friday’s close under an overweight initiation.
JPMorgan argues investors still value Midea as a traditional appliance leader even as it shifts toward a hybrid model combining consumer cash flow with industrial technology.
2030 is the bank’s key horizon: it says Midea could double its market value if it becomes an industrial powerhouse, versus roughly 25% gains on a slower “Panasonic path.”
Three milestones would drive that rerating — global leadership in commercial HVAC, Kuka lifting China factory-automation share to at least 25% from under 10%, and a new B2B unit reaching 20 billion yuan in revenue.
17.5% growth in commercial and industrial solutions last year, plus more than 40% of revenue from overseas, underpins JPMorgan’s view that Midea’s industrial and global expansion could reshape how the market prices the company.