September 26, 2012 / 4:10 AM / 5 years ago

BYD shares slump 9 percent after CLSA slashes target price

HONG KONG (Reuters) - Shares of Warren Buffett-backed BYD Co Ltd (1211.HK) slumped 9 percent in Hong Kong trading after brokerage CLSA slashed its target price for the electric car maker.

A BYD G6 TID is displayed at the 9th China (Guangzhou) International Automobile Exhibition in Guangzhou November 21, 2011. REUTERS/Tyrone Siu

In its report, CLSA maintained its “conviction sell” rating on the company and cut its target price on the stock to HK$0.41, suggesting a further 96 percent decline from current levels.

    “BYD is likely in worse shape than we thought,” said CLSA in a note to clients, adding that the company’s auto business is losing out to competition while its solar business is not expected to turn profitable.

    BYD shares had traded nearly two-and-a-half times their average daily volume by midday in Hong Kong. The company’s Shenzhen listing (002594.SZ) fell 5 percent.

    Reporting by Vikram Subhedar; Editing by Ryan Woo

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