VFS Stock Forecast: VinFast’s Rise Following Q3 Revenue Surge

VinFast Auto (VFS:NSD) has experienced a remarkable surge in its third-quarter revenue. The company’s revenue for Q3 has surged by an impressive 159% to reach a substantial $338 million. The surge in revenue is primarily driven by robust vehicle sales. VinFast’s growth strategy encompasses the creation of an assembly plant in India, a pivotal hub for auto production. This article will highlight the impact of this development and revenue surge on the VFS stock forecast.

Q3 Performance Highlights:

During the third quarter, VinFast achieved the delivery of 10,027 vehicles, marking a slight increase compared to the previous quarter’s figure of 9,535 units.

Growth Plans:

Looking ahead to the full fiscal year 2023, VinFast has confidently reiterated its expectations to deliver a significant number of vehicles, ranging from 40,000 to 50,000 units. Moreover, the company is gearing up to commence deliveries of its VF 6 model in Vietnam by the year’s end, with the VF 7 and VF 3 expected to follow suit in 2024.

Strategic Shift in Distribution:

VinFast is determined for a strategic shift in its distribution approach, starting next year. The company intends to adopt a multi-channel distribution strategy, tailoring its models to suit different market categories. As part of its ambitious growth plans, VinFast is allocating a substantial $1.2 billion for long-term investments in Indonesia, with the objective of commencing production no later than 2026. Furthermore, the company has identified 40 to 50 markets where it intends to collaborate with distributors for the import and distribution of VinFast vehicles.

VFS Stock Evaluation:

Since its debut on the Nasdaq in August following a merger with Black Spade Acquisition, VinFast’s stock,  experienced a notable ascent, reaching a peak of $82.35 on August 28th. However, the stock has since experienced a decline, currently trading at around $8.05. The stock price has changed by -28.25% over the past week, and -72.71% over the past month.

Stock Trends and Analyst Sentiment:

Over the past five trading sessions alone, VinFast shares have faced a decline of approximately 28%. Despite this recent price erosion, the stock maintains a relatively high price-to-earnings (P/E) multiple of 50.9x. Analysts’ consensus on VinFast remains positive, as indicated by the VinFast Auto Ltd. Ordinary Shares stock forecast.

Based on the VFS stock forecast, the average target price is $25.00, reflecting strong buy sentiment. However, the Stock Target Advisor’s analysts are neutral on VFS stock.

Conclusion:

VinFast’s robust Q3 performance, ambitious expansion plans, and continued analyst confidence make VFS an intriguing stock to watch in the dynamic electric vehicle market. Investors and industry observers will undoubtedly be monitoring VinFast’s future developments closely.

Maryam Nasir