VFS Stock Forecast & Price Target

VinFast Auto Ltd is poised for significant growth, with projections to more than double vehicle deliveries in FY25 compared to FY24, driven by strong performance in its home market of Vietnam and initial sales expansions into Indonesia and the Philippines. The company's focus on vertical integration and manufacturing efficiency in Vietnam is expected to enhance profit margins and lower unit costs as production volume increases. Additionally, the introduction of new electric vehicle models is anticipated to elevate the average selling price (ASP), contributing positively to the company's financial outlook.

VinFast Auto Ltd. is experiencing significant challenges reflected in its revised financial outlook, particularly with a projected FY25 gross margin dropping to -30.8% from a previous estimate of -22.3%. The company's reduced average selling price (ASP) forecasts for FY25/FY26 to $14K and $16.1K, along with lower anticipated revenues of $3.4 billion and $4.485 billion, indicate a struggle to meet market expectations. Additionally, persistent negative gross margins, exacerbated by one-time charges, coupled with heightened risks such as supply chain disruptions and manufacturing constraints, further underscore a negative outlook for the company's financial performance.