Deals
China Phone Giant Xiaomi May Be Twice as Expensive as Apple
- Xiaomi should fetch richer multiples than Alibaba, Fitbit: MS
- CLSA cites ‘world-class’ products with high-margin services
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Chinese serial entrepreneur Lei Jun has been compared with Steve Jobs. Now, analysts are saying the smartphone giant he built could be twice as expensive as Apple Inc.
Xiaomi Corp. deserves to trade at a premium to global phone brands due to its market-share gains and faster growth trajectory, according to research from Morgan Stanley, one of banks leading its Hong Kong IPO. The Beijing-based company has a fair value of about $65 billion to $85 billion, translating into around 27 times to 34 times forecasts for its 2019 adjusted earnings, Morgan Stanley wrote in a report this week.