Xiaomi (1810) stock sinks 4% and gets a “SELL” rating, here is why. – Idaho Reporter


Xiaomi (1810) stock sinks 4% and gets a “SELL” rating, here is why.

The price of Xiaomi Group (01810) stock is down 3.81% to 22.25Hong Kong dollars ; about 76.99 million shares were traded on Monday, involving 1.774 billion HKD. The intraday low was at 22.20, 70% of active selling.

  Citi published a research report saying that Huawei may divest its Honor business, and the market competition has brought greater uncertainty to Xiaomi. It lowered Xiaomi’s target price from 22.20 yuan to 19.30 HKD, and at the same time split the rating from “buy” to ” Sell”.

  Citigroup pointed out that Huawei will still pose a major downside risk to Xiaomi. Because the Honor brand and Xiaomi have a direct competitive relationship in China, Xiaomi’s earnings forecast may be lowered by 10-15%.

In my eyes Citi forgets that Xiaomi is unstoppable at the moment and have better products than Honor and are better priced. It is like saying Apple will lose market because iPhone is more expensive than average Android powered phone.

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