Zacks raises target price by 20% for Chinese AI water purifier maker Viomi

Zacks Small-Cap Research (Zacks SCR) has raised its target price for Viomi Technology by 20%. The Chinese manufacturer of AI-powered water purification systems, whose ADRs trade on the Nasdaq, is in the midst of a restructuring that appears to be yielding results.  

Zacks SCR now values Viomi at $4.50 per share, a 20% increase versus its previous target price and 189% above current quotes. Viomi ADRs last closed at $1.56 per share.  

The target price upgrade came after Viomi’s unaudited 2024 financial results, the first since Viomi started a restructuring. Recall that the company announced last year that it would divest unprofitable segments and focus on home water solutions.  

Net revenue surged 29.3% to CNY2.1 billion ($290.3 million) last year. This translated into a net profit of CNY62.3 million ($8.5 million), versus a net loss of CNY89.3 million in the previous year. This strong performance led Zacks SCR to revise its 2025 earnings per ADR forecast upward by 170% to $0.32 per share, with $0.40 per share forecast for 2026.  

Zacks SCR believes Viomi is undervalued relative to its peers and is now positioned to close the valuation gap.  

Founded in 2014, Viomi makes AI-powered water purification systems with enhanced features. Its AI technology remotely monitors water quality in real time, reminds users to replace filters, and enables one-click reordering, while its intelligent waterway self-cleaning technology extends filter lifespan and reduces water purification costs, the company claims. Viomi targets an audience of young, modern, “new-middle-class” consumers, positioning itself as a “tech fashion” brand, according to its website.

Until recently, Viomi also manufactured smart home appliances and connected devices. However, as mentioned, it decided to exit this segment last year.  

Viomi has nearly tripled over the last 12 months. Yet that has come with heightened volatility, Zacks SCR notes. On March 24, the day before its earnings release, Viomi soared 25%, only to drop 20% two days later. Zacks SCR attributes this to the nature of small-cap stocks, whose daily price fluctuations do not necessarily reflect fundamental changes in the business.  

Aside from Zacks SCR, only one other analyst covers Viomi, according to MarketWatch. They maintain a “hold” rating with a target price of $32.68 per share — almost 21 times the stock’s current market price.