Key insights
- Jefferies downgraded Xiaomi to 'Underperform' due to shrinking smartphone margins, rising component costs, and slowing EV sales, projecting a 14% downside. While this directly impacts Xiaomi's stock in Hong Kong, the read-through to US markets is limited, primarily signaling potential headwinds for global tech companies facing similar margin pressures.
Investing.com -- Investment bank Jefferies has downgraded Xiaomi to “Underperform” following a weaker-than-expected first quarter for 2026, citing mounting pressure from slowing electric vehicle sales, shrinking smartphone margins, and rising component costs.
The brokerage cut its target price on Xiaomi shares to HK$25.49 from HK$26.98, implying a 14% downside from the stock’s previous close of HK$29.76. Analysts said the company’s first-quarter earnings before interest and tax (EBIT) plunged 70% year-on-year, significantly below both Jefferies’ own estimates and broader market consensus.