BYD shares under pressure: Financial experts still see potential for long-term investments

BYD shares under pressure: Financial experts still see potential for long-term investments

According to a report by www.deraktionaer.de,

Despite major operational successes, BYD shares have performed disappointingly in recent months. Analysts primarily see a weakening in demand on the Chinese car market as the reason for the current development.

The major bank HSBC predicts that it will be more difficult for BYD to grow. It expects significantly lower sales and profit growth for 2024 compared to 2023 and has therefore reduced the price target for BYD shares. Nevertheless, the bank remains bullish and still sees potential for the car manufacturer.

The Australian broker Macquarie is also optimistic about BYD shares and still sees a lot of upside potential.

The current development of BYD shares is particularly affected by concerns about the Chinese economy and reduced demand for oil from China. This also has a negative impact on the car manufacturer's share price.

These developments are expected to have a short-term impact on the stock market and the financial industry. The share prices of companies in the electromobility and energy sectors could also be affected as market sentiment is subdued due to overall economic developments. Companies that rely heavily on the Chinese market could come under particular pressure.

However, it is important to consider the long-term outlook. Despite the current challenges, analysts still see potential for BYD and consider the company to be a sensible investment in the long term.