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Chardan Research pushed back deliveries expectations for VinFast Auto Ltd. (NASDAQ:VFS) to better reflect ongoing business trends and evolving macro demand trends, but kept a bullish stance on the electric vehicle stock.
“We believe that shares are undervalued at sub-$4 given the company’s ability to produce and distribute EVs, and the backdrop of a powerful global shift toward the electrification of personal transportation,” updated analyst Brian Dobson.
Ahead of VinFast’s (VFS) earnings report, Dobson said he anticipates hearing that the automaker’s sales in Asia are progressing nicely, and expects updates on growth in the North American dealer network and an entrance into the European market.
Looking at the broad electric vehicle market, Chardan Research expects the share shift in the United States and Europe to accelerate in the coming years as the technology and EV adoption become more mainstream. The firm thinks the market is still in the early stages of EV adoption, implying that significant market share is up for grabs in established markets.
Chardarn Research has a Buy rating on VinFast Auto (VFS) and price target of $13.00. Shares of VFS are down 52% on a year-to-date basis and closed on Thursday at $4.03. VinFast Auto (VFS) is lined up to report Q1 earnings on April 17.