JPMorgan has lifted its price target for Weichai Power Co.,Ltd. (000338), citing a favorable shipment outlook, resilient margins, accelerating growth in its AI data center business, and progress in commercializing solid oxide fuel cells (SOFC).

Analysts at JPMorgan, including Karen Li, wrote in a research note that the recent share price pullback in WEICHAI POWER (02338) stemmed from negative market sentiment toward the AI data center power supply chain and macroeconomic headwinds, rather than any deterioration in the company's business execution or fundamentals. Note: The stock has fallen more than 30% from its historical high in May.

"Industry benchmarking data from Bloom Energy, Ceres, and leading marine engine/gas engine companies all indicate that Weichai has years of growth potential ahead, and the upside from domestic and overseas AIDC computing power supply demand as well as the solid oxide fuel cell business has not yet been fully reflected in market consensus expectations and valuations," the analysts wrote.

JPMorgan maintained its overweight rating on Weichai Power Co.,Ltd. (000338) and raised its price target from HK$55 to HK$57.