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<Research>M Stanley Upgrades ZTE (00763.HK) to Overweight, Raises TP to HKD39; AI Catalyst Expected to Ignite in 2H26
Recommend 8 Positive 16 Negative 16 |
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Morgan Stanley published a report upgrading ZTE (00763.HK) H shares to Overweight from Equalweight, raising the H-share TP to HKD39 from HKD31.5, mainly based on potential positive AI catalysts and an inflection point in earnings growth. The rating on ZTE (000063.SZ) A shares was upgraded to Equalweight from Underweight, with the A-share TP lifted to RMB34.3 from RMB29.44. On the edge device front, the company's collaboration with ByteDance around the Doubao AI assistant integrates advanced agentic, multi-modal, and system-level AI capabilities into smartphones. Early demand indicators, such as initial batch sell-out, suggest strong market interest. The broker expected ZTE to deepen this partnership, paving the way for broader commercialization of AI smartphones, which could become an important catalyst for sentiment and valuation. The broker saw a key inflection point emerging in 2H26, when a low base effect will support a return to positive earnings growth. As investor focus shifts toward the recovery phase, alongside the re-emergence of AI catalysts, a potential re-rating may occur. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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