Goldman Doubles Price Target for Luxshare Precision to 106 Yuan, Citing Strong Data Center and Auto Electronics Growth

Deep News06-24

Goldman Sachs has significantly raised its 12-month price target for Luxshare Precision Industry Co., Ltd. from 50.15 yuan to 106 yuan. This adjustment reflects the firm's positive outlook on several key growth drivers, including the company's data center operations, automotive electronics segment, and expansion with overseas OEM clients.

Analysts, including Verena Jeng, noted in their report that Luxshare Precision Industry Co., Ltd. is projected to achieve a revenue compound annual growth rate (CAGR) of 22% from 2025 to 2028. This growth is attributed to the company's competitive advantages, such as its customized materials that offer a strong balance of performance and cost.

The telecom and data center business segment is forecast to see particularly strong expansion, with a projected CAGR of 67% over the same period. By 2028, this segment is expected to contribute 19% of the company's total revenue.

Consequently, Goldman Sachs has increased its profit forecasts for Luxshare Precision Industry Co., Ltd. for the years 2026 and 2027 by 8% and 27%, respectively. These revisions primarily account for higher anticipated revenues, a slightly lower gross margin, and robust growth within the company's components business.

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