Warren Buffett keeps selling BYD. Why some analysts still say it’s a buy
Warren Buffett's Berkshire Hathaway has reduced its stake in Chinese electric vehicle manufacturer BYD by more than half over the last 18 months, with the latest sale occurring on October 25. Despite this divestment, several analysts maintain a bullish outlook following BYD's record quarterly earnings, which showed an auto segment net profit of Rmb9.4 billion ($1.28 billion) and a new historical high in per-car profitability. UBS Global Research raised its price target for BYD to 360 Hong Kong dollars ($46), citing economies of scale, accelerating exports, and declining lithium prices as key drivers. The firm considers BYD its most favored EV name under coverage. Meanwhile, Bernstein analysts identified BYD as the top brand in China based on a survey of over 1,500 consumers, noting its strong appeal to first-time buyers and its reputation for value. BYD is expanding its global footprint with export sales expected to double next year to approximately 400,000 units, up from 200,000 this year. Analysts from Jefferies also reiterated a buy rating with a price target of 331 Hong Kong dollars. Charlie Munger, Buffett's partner, praised BYD's leadership and expressed confidence in the Chinese economy's future prospects, suggesting that Berkshire's exit may be driven by portfolio rebalancing rather than a lack of faith in the company.
📉 Berkshire sold over half its BYD stake recently.
🚀 BYD hit record quarterly auto net profit of Rmb9.4bn.
📈 UBS raised target to 360 HKD, naming it top EV pick.
🇨🇳 Bernstein survey shows BYD is China's top preferred brand.
🌍 Export sales projected to double next year from 200k units.
📉 Berkshire Hathaway has sold more than half its BYD stake over 18 months, with the latest transaction on Oct. 25 averaging 245.86 HKD per share.
🚀 BYD reported record quarterly earnings with an auto segment net profit of Rmb9.4bn ($1.28bn), marking a new historical high for per-car profitability.
📈 UBS raised its price target to 360 HKD ($46) and named BYD its most favored EV stock, citing scale and export growth.
🇨🇳 Bernstein survey data shows BYD is the top preferred brand in China among first-time buyers and owners of legacy brands.
🌍 Export sales are projected to double next year from 200,000 units, with current Q3 exports accounting for 9% of total volume.
💰 Jefferies reiterated a buy rating with a price target of 331 HKD, highlighting BYD's wide price range and value proposition.
🗣️ Charlie Munger praised BYD's leadership as superior to Elon Musk's and expressed bullishness on the Chinese economy's long-term prospects.
- Record quarterly net profit of Rmb9.4 billion in auto segment.
- UBS raised price target to 360 HKD, up nearly 50%.
- Top preferred EV brand in China per consumer survey.
- Export sales expected to double next year globally.
- Jefferies maintains buy rating with 331 HKD price target.
- BYD: Berkshire sold >50% stake in 18 months.
- Tesla: Shares dropped ~10% on weak results.
- BYD achieved record quarterly net profit of Rmb9.4 billion ($1.28 billion) in its auto segment, indicating strong operational performance.
- UBS raised its price target to 360 HKD ($46), a nearly 50% increase from the previous close, reflecting high analyst confidence.
- BYD is the top preferred EV brand in China according to a survey of over 1,500 consumers, signaling strong market demand.
- Export sales are expected to double next year, expanding BYD's global revenue streams and reducing reliance on domestic markets.
- Jefferies maintained a buy rating with a price target of 331 HKD, validating the company's strategic positioning.
- Berkshire Hathaway has significantly reduced its stake in BYD, selling more than half of its holdings over the last 18 months.
- Tesla reported disappointing quarterly results, causing its shares to drop about 10%, which may impact competitive dynamics in the EV sector.