Xiaomi: Hold Rating Amid Margin Pressures, Low-End Vulnerability, and Competitive Challenges

Jefferies analyst Edison Lee downgraded Xiaomi to a Hold rating with a price target of HK$43.36, citing margin pressures, low-end market vulnerability, and competitive challenges. Despite some success in premiumization, 62% of Xiaomi's smartphones are priced under $200, exposing it to rising memory costs and declining sales forecasts. Competition from Samsung and reduced earnings projections further impact Xiaomi's outlook. Lee advises holding the stock due to these ongoing pressures and uncertainties.