On June 15, ZTE Corporation rose 4% in regular trading, trading at HK$27.26/share, with turnover of HK$343 million. The stock stabilized and rebounded after pulling back from approximately HK$29 to the HK$26 level over consecutive trading sessions due to profit-taking and sector-wide weakness in communications equipment.
On the news front, Morgan Stanley previously upgraded ZTE's H-share rating from \"Equal-Weight\" to \"Overweight,\" raising its target price from HK$31.5 to HK$39, citing potential positive AI catalysts and an earnings growth inflection point in the second half. The bank noted that ZTE's deepening collaboration with ByteDance on the Doubao AI assistant — integrating intelligent agents, multimodal capabilities, and system-level AI into smartphones — could serve as a significant sentiment and valuation catalyst. Additionally, the company's partnership with Tencent on AI cloud computing further enriches its AI commercialization pathway. Morgan Stanley expects the company to return to positive earnings growth in H2, supported by a low base effect, with short-term earnings risks largely priced in.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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