VFS Stock Forecast & Price Target

VinFast Auto Ltd is poised for significant growth, with the company projecting to more than double its vehicle deliveries in FY25 compared to FY24, driven by strong performance in Vietnam and expanding markets in Indonesia and the Philippines. The company's strategy includes the introduction of new models which is expected to enhance average selling prices (ASP) over the next year, alongside improved margins as production volumes increase and costs decrease due to new platform designs. Additionally, VinFast's competitive advantages include a vertically integrated manufacturing process in Vietnam, access to diverse global markets, and robust financial support from Vingroup, bolstering its outlook in the electric vehicle sector.

VinFast Auto Ltd. faces a negative financial outlook due to several fundamental concerns, including a significant decrease in projected gross margins, which are now estimated at -30.8% for FY25 compared to -22.3% previously. Additionally, the anticipated blended average selling prices (ASP) for their automotive products have been lowered, leading to reduced revenue forecasts of $3.4 billion and $4.5 billion for FY25 and FY26, respectively. Furthermore, an escalating EBITDA loss of $419 million and persistent challenges such as supply chain disruptions, manufacturing constraints, and fierce market competition further exacerbate the company's financial viability.