Analyst Elizabelle Pang from DBS reiterated a Buy rating on Hesai Group Sponsored ADR (HSAI – Research Report) and keeping the price target at $25.00.
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Elizabelle Pang’s rating is based on several factors that highlight Hesai Group’s strong market position and growth potential. The company has demonstrated impressive earnings performance in the first quarter of 2025, with better-than-expected margins driven by scale and cost optimization in the ADAS and robotics lidar segments. This positive financial outlook is further supported by management’s reaffirmation of revenue and profit guidance for 2025, with expectations of achieving profit breakeven in the second quarter.
Hesai Group is well-positioned to benefit from the rapid growth in the global lidar and robotics markets, with the automotive and robotaxi lidar market projected to grow significantly. The company’s partnerships with leading OEMs and its advancements in product offerings, such as the cost-effective ATX automotive lidar, bolster its competitive edge. Additionally, the ongoing launches in the ADAS, autonomous driving, and robotics sectors are anticipated to drive further demand for Hesai’s products, acting as positive catalysts for its share price. Despite some risks, such as potential regulatory headwinds and competition, Hesai’s leadership in the lidar market and its strategic initiatives justify the Buy rating.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $23.30 price target.