VFS Stock Forecast & Price Target

VinFast Auto Ltd. is positioned for significant growth, with the company projecting to more than double its electric vehicle (EV) deliveries in FY25, supported by strong performance in its domestic market and expanding product offerings in Indonesia and the Philippines. Vehicle sales have shown impressive traction, achieving $662.9 million, which reflects a 48% year-over-year increase, alongside a notable 79% growth in EV deliveries in Vietnam. Furthermore, the company's diversified vehicle lineup and favorable government policies in Vietnam targeting the electrification of two-wheelers are expected to sustain momentum in its e-scooter business, contributing to overall top-line growth.

VinFast Auto Ltd reported a substantial decline in gross margin, reaching (56.2%), a drop from (41.1%) in the prior period and (24.0%) a year ago, indicating significant financial distress. The company also recorded an EBITDA loss of $576.0 million, which worsened from previous periods, primarily due to delayed revenue recognition and high operational costs, particularly in R&D. Furthermore, total cash and cash equivalents fell to $349.4 million, down from $549.8 million in the prior period, reflecting heavy capital expenditures that, coupled with ongoing negative gross margins, raise concerns regarding the company's financial sustainability.