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BofAS Chops ZTE (00763.HK) TP to $28, Cuts Profit Estimations
2025-04-25 14:06:31
ZTE (00763.HK)'s 1Q25 financial results were broadly in line with the expectations of BofA Securities and the market, BofA Securities issued a research report saying. Sales were strong, beating the estimations of the broker/ the market by 11%/ 8% each.

Gross profit margin declined by 7.8 ppts YoY to 34.3%, missing the forecasts of the broker/ the market by 5.3/ 3.5 ppts, while operating income was lower than the forecasts of the broker/ the market by 21%/ 13%, respectively.

BofA Securities raised its FY2025-FY2027 sales forecasts for ZTE by 6-11%, but lowered its profit forecasts by 9-12% due to gross profit margin dilution. Accordingly, the broker chopped its target price on ZTE's H-shares from $32 to $28, with rating reiterated at Buy.
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