According to "The Big Banks," Bank of America Securities has lowered the target price for Xiaomi to 45 yuan and reiterated a "Buy" rating

Bank of America Securities published a research report indicating that it expects Xiaomi (01810.HK) to have an adjusted profit of RMB 5.3 billion in the fourth fiscal quarter of 2025, a year-on-year and quarter-on-quarter decline of 37% and 54%, respectively. At the same time, the bank lowered its revenue forecast for the company by 11% to reflect the slowdown in smartphone shipments and pressure on the IoT business; due to rising component prices, it expects the company's gross margin to decline by 1.8 percentage points quarter-on-quarter to about 21%.

The bank expects Xiaomi's electric vehicle shipments this year to be 570,000 units, higher than the guidance of 550,000 units, and believes that the upcoming new models will drive demand to accelerate again.

Bank of America Securities has lowered its net income forecast for Xiaomi from 2025 to 2027 by 8% to 31% to reflect the risks in smartphones and the weak trend of electric vehicles in mainland China. The bank has reduced Xiaomi's target price from HKD 52 to HKD 45, maintaining a positive outlook on its long-term growth prospects and maintaining a "Buy" rating