What’s New?
Goldman Sachs has officially initiated coverage of DiDi Global (ticker: DIDIY) with a Buy rating and a $7.20 price target—a move that sparked immediate investor interest. The announcement, made in mid‑July 2025, highlighted DiDi’s improved fundamentals and underappreciated valuation.
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Why $7.20 Makes Headlines
Based on recent trading near $5.48–$5.50, Goldman’s target implies over 30% upside, offering a compelling return narrative for long-term holders.
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Goldman underscores that DiDi:
- Operates at an undemanding 14x forward P/E for 2026.
- Projects ~8% revenue CAGR and 44% EPS CAGR from 2024–2027, signaling strong profitability growth ahead.
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Furthermore, when compared against peers like Uber (forecasted P/E of 27x), DiDi’s current 18x P/E and lower market cap ($25B) paints a much more attractive valuation landscape.
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Why Goldman Is Bullish
Goldman’s optimism rests on multiple strategic strengths:
- Domestic Profit Engine: DiDi’s China operations are delivering robust FCF and double-digit profit growth, making it one of the fastest profit growers in Goldman’s coverage universe.
Investing.com+2TipRanks+2 - Sector Leadership: Dominant share in ride-hailing and strong positioning in autonomous driving and mobility tech further boost confidence in sustained value capture.
MarketBeat - Attractive Risk/Reward: Given its fundamentals and growth trajectory, Goldman views the stock’s valuation as underappreciated and ripe for re-rating.
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A Broader Analyst Landscape
Other analysts corroborate Goldman’s view:
- Market consensus ranges around $6.65, with estimates spanning $6.06 to $7.46—even higher than Goldman’s projection.
Zacks+3Fintel+3MarketBeat+3 - Zacks provides a similar outlook, with price targets between $6.36 and $7.20, reinforcing the upper end of DiDi’s potential range.
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While Goldman leads the optimism, the broader analyst community remains bullish overall, with upside expectations between 20% to 40% for the year ahead.
What This Could Mean for Investors
1. Valuation Re-rating Potential
Goldman’s target underscores how much upside is priced in if DiDi continues on its current trajectory—especially in FCF and profitability.
2. Positive Investor Sentiment
A major bank’s endorsement often pulls in institutional interest and fuels momentum. Expect attention from global funds and long-term buyers.
3. Benchmarks Amid Recovery
If DiDi achieves consistent earnings growth, Goldman’s target could serve as a benchmark for a broader rebound of Chinese tech on OTC markets.
4. Tailwinds in Autonomy & Global Expansion
Goldman noted that deeper penetration in lower-tier Chinese cities and international markets, alongside autonomous driving investments, are key growth catalysts.
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Risks to Monitor
No analysis is complete without acknowledging challenges ahead:
- Macroeconomic Uncertainty: Economic slowdown or regulatory shocks could derail earnings momentum.
- Execution Stretch: Scaling autonomous operations or expanding internationally remains operationally complex.
- Peer Valuation Pressure: While undervalued now, competing firms could compress multiples if broader sentiment shifts.
- Still OTC-Limited Liquidity: DiDi’s OTC status may prevent many global investors from participating meaningfully.
Investor Takeaways
- Bullish but Cautious — Goldman’s $7.20 target offers meaningful upside, but execution must catch up.
- Watch Profit Growth Closely — Sustained EPS and FCF gains will validate valuation premiums.
- Monitor Regulatory Landscape — Any geopolitical or policy shifts may temper enthusiasm quickly.
- Valuation Remains Key — Compared to peers like Uber, DiDi trades at a favorable multiple, making it a potential value play.