JPMorgan raises Weichai Power's target price, bullish on its strong outlook.

JPMorgan raised its target price for Weichai Power, citing the company's improving shipment outlook, resilient profit margins, accelerating growth in its AI data center business, and progress in commercializing solid oxide fuel cells. Analysts including Karen Li wrote in a research note that the recent share price pullback in this Chinese manufacturer stems from negative market sentiment toward the AI data center power supply chain and macroeconomic headwinds, rather than any deterioration in Weichai's business execution or fundamentals. Note: The stock has fallen more than 30% from its historical high in May. "Industry benchmarking data from Bloom Energy, Ceres, and leading marine engine/gas engine companies all indicate that Weichai has years of growth potential, and the upside from domestic and overseas AIDC computing power demand as well as its solid oxide fuel cell business has not yet been fully reflected in market consensus expectations and valuations." JPMorgan maintained its overweight rating on Weichai Power, raising its target price from HK$55 to HK$57.