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Vietnamese electric vehicle startup VinFast Ltd. (NASDAQ:VFS) has snagged a bullish recommendation even as some on the Wall Street calling for a collapse in its stock price.

The VinFast Analyst: Daniel Ives initiated VinFast stock with an Outperform rating and $12 price target, suggesting potential for about 125% upside from current levels.

The VinFast Thesis: VinFast, founded by Vietnamese conglomerate Vingroup, has embarked on the mission of bringing affordable and luxury electric cars to the world, said Ives in the initiation note. The company is seeking to expand and capture more niche electric transportation markets emerging over the next decade,including e-scooters, portable charging devices, and e-buses, he said.

“Through advanced manufacturing capabilities across its industrial supplier park, we believe VinFast iswell-positioned to generate a durable product portfolio for electric transportation globally while creating a strong ecosystem to generate profitable growth over the coming years,” Ives said.

The analyst said he came away “extremely impressed” with the company’s EV footprint following a visit to its operations in Vietnam. While establishing itself as a major EV player in Vietnam, the company has also taken strategic steps to increase its global manufacturing footprint with significant investments across relatively untapped EV markets across the globe, most notably the United States, he said.

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Ives noted that the company has recently broken ground on its EV factory in North Carolina, and following the Phase 1 construction at the plant, it envisages a production capacity of 150,000 EVs per year. He said the EV maker is eyeing expansion into seven new countries in the Asia-Pacific region over 2024.

With a $1.25 billion cash infusion directly from VinGroup Founder and Chairman Pham Nhat Vuong, the company expects to expand to 50 new markets by the end of 2024, he added.

“VinFast is also in the process of establishing local manufacturing facilities in these strategic markets (US, India, Indonesia), the company is looking to leverage its expansion and growth story to become a notable player in the EV industry,” Ives said.

Why It’s Important: After the stock was listed in the U.S., it rallied strongly to quickly add market…

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