Lyon: Ideal Automobile -W (02015.HK) target price cut to 68 Hong Kong dollars, significantly reducing revenue and profit forecasts.

According to the Wise Financial News APP, it was reported that Lyon issued a research report stating that the target price of Xiaolu Ideal Auto-W (02015.HK) has been reduced to over half to 68 Hong Kong dollars. Due to changes in the vehicle model mix, destocking, and increased discounts, Ideal Auto's first quarter performance turned from profit to loss, recording a net loss of 2.3 billion RMB, or an adjusted net loss of 2.1 billion RMB. The bank predicts that the company is facing challenges such as slowing pace of new car launches, inventory pressure, and increased spending on new business, with a longer duration than previously expected.