BofAS Raises XIAOMI-W Price Target to $16.2 on Strong SU7 Demand

However, the broker remains cautious about the sustainability of SU7's demand and the company's heavy operating expenses.

With a competitive mainland EV market and the need for increased sales and marketing efforts, profitability pressure on XIAOMI's core smartphone business is expected.

BofAS shifted its valuation basis to sum-of-the-parts (SOTP), reflecting the company's evolving business landscape, while maintaining a Neutral rating. Investors are anticipated to shift focus to the valuation of XIAOMI's EV business following the successful debut of SU7.