Macquarie analyst Eugene Hsiao raised the firm’s price target on Zeekr (ZK) to $38 from $31 and keeps an Outperform rating on the shares after Zeekr reported Q3 results and Geely Automobile (GELYF) announced two major transactions: increasing its stake of Zeekr from 51.5% to 62.8% by purchasing shares from its parent Geely Holding with cash and reporting Zeekr will take a 51% stake in Lynk & Co and consolidate the business via purchasing a 50% stake from Volvo Car and Geely Holding. The Lynk & Co acquisition “changes our fundamental view on the business model” as the “New Zeekr” with Lynk looks set to address the key weaknesses of “Old Zeekr,” including brand positioning, scale and captive in-house manufacturing, the analyst tells investors.
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