JP Morgan raises BYD COMPANY (01211) target price to 120 Hong Kong dollars. Electric car sales may be stronger under fluctuating oil prices.

JPMorgan released a research report stating that BYD Company (01211) H shares have risen 8% since the beginning of the year, outperforming the MSCI China Index and its peers, partly due to market expectations that if oil prices remain at $80 per barrel or above this year, demand for new energy vehicles domestically and globally will be stronger than expected. The analysis also shows that during past oil price fluctuations, BYD Company Limited not only outperformed MSCI China auto stocks but also the overall market, especially when oil prices were above $80 per barrel. The bank has raised its sales volume forecast for BYD Company Limited domestically and for exports, raising the target price of BYD Company Limited H shares from HK$110 to HK$120 and the target price of BYD Company Limited (002594.SZ) A shares from RMB 95 to RMB 120, maintaining a "overweight" rating. JPMorgan pointed out factors driving positive momentum for BYD Company Limited, including: (1) the company's recent introduction of super-fast charging strategies in the domestic market; (2) the gradual commencement of operations in global factories from the second quarter of 2026, such as in Hungary, Indonesia, Malaysia, and Brazil.