By Martin Mou

Geely Automobile Holdings Ltd. shares rose sharply Friday morning following a Reuters report that its parent will partner with Chinese search giant Baidu Inc. to manufacture electric vehicles.

Geely's Hong Kong-listed shares surged to as high as HK$30.65 before trading 8.5% higher at HK$30.15, nearly doubling its value over the past three months.

Analysts have turned more bullish on the Chinese car maker in recent weeks, citing sales recovery and other catalysts.

Geely's shares may get support from its upcoming A-share listing and a potential merger with Volvo AB, which is owned by Geely's parent, Bocom International said. The broker raised Geely's target price to HK$38.50 from HK$25.40.

Earlier this week, Geely set the full-year sales target for 2021 at 1.53 million units, representing a 16% increase from last year.

Write to Martin Mou at martin.mou@wsj.com

(END) Dow Jones Newswires

01-07-21 2120ET