Key Takeaways:
JPMorgan Chase & Co. raised its price target on Leapmotor to HKD90 and boosted earnings forecasts by up to 17 percent, citing a strong export outlook and the launch of a new premium model.
The bank maintained its "Overweight" rating on the electric vehicle maker, according to a research report released April 16. The new target implies a significant upside from its recent trading levels.
The upgrade is supported by a 10 to 17 percent increase in JPMorgan's earnings forecasts for this year and the next. The bank projects Leapmotor's sales volume will jump approximately 90 percent quarter-over-quarter in the second quarter of 2026, or 100 percent in the second half of the year compared to the first half, driven by robust export demand.
The bullish call coincides with Leapmotor's launch of the D19, its first high-end SUV priced above RMB200,000. The success of this model is critical for the company to penetrate the premium market segment and validate the bank's optimistic growth projections.
The D19 SUV is a key part of Leapmotor's strategy to move upmarket. The company is also expected to roll out two additional models around June, further expanding its product portfolio and addressable market. This product offensive is central to JPMorgan's thesis that the company can achieve substantial sales growth in the coming year.
The forecast also highlights the role of exports, which are benefiting from strong oil prices, making electric vehicles more attractive in international markets. This provides a dual tailwind for Leapmotor alongside its domestic product expansion.
The updated forecasts from a major investment bank could increase investor confidence in the near term. The successful market reception of the D19 and the upcoming models in June are the next major catalysts for the stock.
This article is for informational purposes only and does not constitute investment advice.
