JP Morgan sets a target price of 150 yuan for BYD Company and reaffirms a long-term positive outlook on the stock with a rating of "Overweight."

JP Morgan's research report indicates that BYD (01211.HK) engaged in discussions with two senior executives of the company during the biennial Tokyo Motor Show (October 30 to November 9). Besides BYD, among global brands, Toyota (TM.US) is considered the most interesting for its future design language and mobility strategy, as well as Mercedes-Benz's new pure electric vehicle models, which aligns with JP Morgan's long-term constructive view on GAC Group (02238.HK) and Zhongsheng Holdings (00881.HK).

JP Morgan highlighted 10 observations from this motor show and their impact on BYD and the broader Chinese automotive market by 2026; reaffirming a long-term positive outlook on BYD, believing that the stock will gradually bottom out and rebound following the announcement of new models set to launch in 2026, successful global expansion, and improving profitability in Q4 2025 and 2026. The stock is given a target price of 150 yuan, with a rating of "Overweight."

JP Morgan believes that after the official debut and pricing announcement of BYD's first K-Car Racco in the first half of 2026, it could account for more than one-third of BYD's sales in Japan in the long term. JP Morgan's rough assessment shows that once fully operational, the potential revenue contribution could range from 400 million to 1 billion yuan.

JP Morgan has not yet included Racco in its earnings forecast for BYD, but the potential profit contribution from light vehicles (estimated at around 400 million to 1 billion yuan in the Japanese market) could provide an upside of 1% to 2% to BYD's earnings forecast for 2026