Last Updated: 13 Sep 2024
Executive Summary
VinFast Auto Ltd. (VFS) is a Vietnamese automotive manufacturer that has recently entered the US market. The company is experiencing rapid growth, with revenue increasing by 2.685% year-over-year. However, the company is still unprofitable, with a negative profit margin of -1.702%. Analysts are bullish on VFS, with a consensus price target of $8.50. The stock is currently trading at $3.96, which is below the analyst target price.
Company Overview
VinFast Auto Ltd. was founded in 2017 and is headquartered in Hai Phong, Vietnam. The company manufactures a range of vehicles, including cars, SUVs, and electric scooters. VFS has a strong presence in Vietnam, where it is the leading automaker. The company is also expanding into the US market, where it has launched its VF e35 and VF e36 electric SUVs.
Fundamental Analysis
VFS is a rapidly growing company, with revenue increasing by 2.685% year-over-year. However, the company is still unprofitable, with a negative profit margin of -1.702%. This is due to the company's high operating costs. VFS has a negative book value of -$67306.94 and a negative EPS of -$1. The company's return on assets (ROA) is -0.178% and its return on equity (ROE) is 0%.
Technical Analysis
The VFS stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The technical analysis suggests that the VFS stock price is likely to continue to trend down in the short term. The stock is currently trading below its support level of $4.00. If the stock price falls below this level, it could fall to $3.50 or even lower.
Long Term Outlook
The long-term outlook for VFS is more positive. The company is a rapidly growing player in the automotive industry. The company's expansion into the US market is a major growth opportunity. If VFS can successfully execute its growth plans, the stock price could rise significantly in the long term.
Analyst Recommendations
Analysts are bullish on VFS. The consensus price target is $8.50, which is more than double the current stock price. Two analysts have a Strong Buy rating on the stock, while two analysts have a Buy rating. No analysts have a Hold, Sell, or Strong Sell rating on the stock.
