VinFast Auto Ltd. (NASDAQ:VFS) traded at a record low of $7.01 early on Tuesday before tracking up 2.07% for the session.
The electric vehicle stock now commands a market cap of around $17B after it was once valued at greater than General Motors (GM) and Ford (F) combined. VinFast (VFS) still trades with a higher valuation than NIO (NIO), Lucid Geoup (LCID), and Fisker (FSR), due in part to low percentage of the total outstanding shares available for trading.
At least one sell-side firm sees the rationale for VinFast (VFS) to bounce off its nearly-found low. Chardan Research launched coverage on the auto stock with a Buy rating and price target of $11. Analyst Brian Dobson said the irrational forces that contributed to the stock’s roller coaster trading out of the gate appear to have waned and should not distract from a sober discussion of the company’s meaningful long-term growth potential.
“In our view, VFS has the production capability to capture EV market share. We see the potential for 73% revenue growth through 2026E and see 52% upside in the shares.”
Crucially, Chardan Research forecasts that VinFast Auto (VFS) will surpass ~150K electric vehicle units in 2026 and generate positive gross margin. The firm also thinks the company is well aware of the bad press over the quality of its vehicles and is making meaningful improvements to the VF8 and other key models.