HSBC Starts Full Truck Alliance Co. Ltd. (YMM) at Buy

HSBC analyst Ritchie Sun initiates coverage on Full Truck Alliance Co. Ltd. (NYSE: YMM) with a Buy rating and a price target of $18.00.

The analyst comments: "We initiate on FTA with a Buy rating and DCF-based TP of USD18. This implies a 27x 2025e PE vs 27% 2025e EPS growth. Besides upside to earnings, we think any sizable dividend payout could drive a re-rating as FTA can better utilise its USD3bn offshore cash, which mostly earns c5% interest rate on USD deposits. Our 2025-26 OP estimates are 9-13% above consensus due to stronger operating leverage driven by robust commission growth. Key downside risks: Weak order growth, failure to grow monetisation rate, and freight brokerage business shrinking faster than expected. FTA to report 4Q24 on 5 March. We expect a small beat on bottom line."

For an analyst ratings summary and ratings history on Full Truck Alliance Co. Ltd. click here. For more ratings news on Full Truck Alliance Co. Ltd. click here.

Shares of Full Truck Alliance Co. Ltd. closed at $11.48 yesterday.

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