Morgan Stanley lowers the target price of GEEKPLUS-W to 29 yuan, rating it "Overweight."

Morgan Stanley published a research report, expecting GEEKPLUS (02590.HK) to be in a rapid penetration phase for its Autonomous Mobile Robot (AMR) business, with steady growth in revenue and orders. However, the company is increasing investments in embodied artificial intelligence and overseas channels, which may sacrifice some profitability in the short term for future growth.

The firm lowered its gross margin forecasts for GEEKPLUS for 2026 to 2028 to 36.3%, 37%, and 37.3%, respectively, to reflect the increased order mix from Latin America and Eastern Europe, freight cost uncertainties, and potential dilution effects from new product capacity enhancements. At the same time, it raised the assumptions for research and development and sales expense ratios to reflect increased investments in embodied AI and overseas channel development, with net profit margin forecasts for 2026 to 2028 at 1.6%, 5.8%, and 9.7%, respectively. The firm lowered its target price from 37 yuan to 29 yuan, maintaining a "Buy" rating