---
title: "Morgan Stanley lowers BYD's net profit forecast, target price at 126 yuan, urges to increase holdings"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283429946.md"
description: "Morgan Stanley lowered its net profit forecast for BYD by 13% for 2026 and 2027, and reduced its earnings per share forecast by 12%. It maintained its sales forecast unchanged, with sales expected to be 5.2 million and 5.7 million vehicles in 2026 and 2027, respectively, and introduced a sales forecast for 2028 of 6.2 million vehicles. The gross margin forecasts were lowered to 18.3% and 18.7%, due to rising raw material costs and increased R&D investment. The target price is set at 126 yuan, with a rating of \"Overweight.\""
datetime: "2026-04-21T02:35:07.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283429946.md)
  - [en](https://longbridge.com/en/news/283429946.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283429946.md)
---

# Morgan Stanley lowers BYD's net profit forecast, target price at 126 yuan, urges to increase holdings

Morgan Stanley's research report indicates that it maintains its sales forecasts for BYD (01211.HK) at 5.2 million and 5.7 million units for 2026 and 2027, respectively, and introduces a sales forecast of 6.2 million units for 2028. However, the bank has lowered its gross margin forecasts for 2026 and 2027 by 0.3 and 0.2 percentage points, to 18.3% and 18.7%, respectively, due to inflation in raw material costs, along with increased bill of materials (BoM) costs resulting from upgrades in intelligent driving and ultra-fast charging specifications. Some of this pressure has been offset by increased sales in overseas markets and higher proportions of high-end models.

The bank has also raised its operating expense forecasts for the same period, considering the increased investment in intelligent driving research and development, as well as rising sales and management expenses overseas. As a result, the net profit forecast for the period has been lowered by 13%, and the earnings per share forecast has been reduced by 12%. The target price is set at 126 yuan, with a rating of "Overweight."

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