Wall Street Loves Xiaomi as IPO Sponsors Predict Surging Profits

Photographer: Michael Nagle/Bloomberg
Lock
This article is for subscribers only.

Analysts are full of praise for Xiaomi Corp., whose stock is drawing a flurry of bullish ratings after a muted debut in Hong Kong.

Following a mandatory quiet period after its initial public offering last month, joint sponsors Goldman Sachs Group Inc. and Morgan Stanley both recommend buying the shares. Analysts at JPMorgan Chase and Co. and China International Capital Corp., who workedBloomberg Terminal on the deal, also initiated their coverage with a bullish rating. While Credit Suisse Group AG’s neutral recommendation bucks the trend, the brokerage still predicts the shares will rise to HK$18.60, or 9.4 percent higher than the offer price.