Why VinFast Auto Stock Soared 21% This Week
Shares of Vietnamese electric vehicle (EV) maker VinFast Auto (NASDAQ: VFS) are on fire this week. The stock ended the week 21.3% higher as the market closed on the holiday-shortened trading week, according to data provided by S&P Global Market Intelligence. Earlier this week, a widely followed analyst in the EV sector shocked investors with a buy rating and the prediction of huge upside for the EV start-up.
On Tuesday, Wedbush analyst Dan Ives initiated coverage of VinFast, giving it a buy rating and a $12-per-share price target. That represented more than a double in the stock at the time and would still mean a gain of over 80%, even after the stock's jump this week.
The new analyst rating comes after VinFast shares have had a turbulent debut on the public markets. The stock peaked at about $82 per share after it went public in August. But Ives thinks the company's valuation has dropped too far since then.
Source Fool.com
