Morgan Stanley:Xiaomi stock to face challenges, price target $HKD 24 – Idaho Reporter

Asia, Technology

Morgan Stanley:Xiaomi stock to face challenges, price target $HKD 24

Morgan Stanley issued a research report today stating that Xiaomi’s management revealed that it remains optimistic about the three major business areas this year and is confident that it will increase its market share with its active offline expansion strategy. Internet services can benefit from the group’s monthly active users ( MAU) population growth and higher average revenue per user (ARPU) for high-end mobile phone users, but gaming revenue may encounter resistance this year.

The strong growth of smartphone market share may translate into MAU growth. Xiaomi’s continued penetration into the high-end market can also drive ARPU up. However, large game publishers renegotiated the revenue sharing of several new games in the second quarter, which affected Xiaomi. As for the gaming revenue performance in the third quarter, it is expected that Internet services will still face challenges as a whole. MS has been given a target price of $HKD 24 for Xiaomi shares.

Xiaomi closed down 5.6% on Thursday, with a 32 Hong Kong dollars price tag.

Xiaomi price lost the steam after UBS issued a research report, lowering the target price of Xiaomi stock from 23 Hong Kong dollars to 22 Hong Kong dollars; the rating was lowered from “Neutral” to “Sell”.

1 Comment


    Hello Robert.
    You have been very helpful for me since I found your site and I just wanted to give a heads up if you didn’t know already that Reuters had an article a couple of hours ago that stated that xiaomi has been included in the Pentagon’s list of companies with ties to Chinese military.

    US investors are supposed to divest their holdings till November 2021.

    I would also like to ask since you are so knowledgeable :

    Does this also affect Xiaomi’s supply chain like Huwaei’s?

    Will we see as a result of this xiaomi loosing Google services and access to chips?

    Or is it only a ban on US investment and nothing else?

    Thank you so much for any help you can give me.

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