In a report released today, Ming-Hsun Lee from Bank of America Securities maintained a Buy rating on Pony AI Inc. Sponsored ADR, with a price target of $21.00.
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Ming-Hsun Lee has given his Buy rating due to a combination of factors that highlight Pony AI Inc.’s strategic advancements and market positioning. One of the primary reasons is the company’s recent achievement of obtaining a permit to operate fully driverless commercial robotaxi services in Shanghai’s Pudong New Area. This milestone is significant as it positions Pony AI as the sole company with such permits across all four major tier-one cities in China, including Beijing, Shanghai, Guangzhou, and Shenzhen.
Lee believes that this achievement underscores Pony AI’s technological and operational capabilities in the robotaxi sector. The expansion into these major urban markets is expected to allow Pony AI to scale its fleet size effectively, leading to enhanced profitability through improved economies of scale and unit profitability. These strategic developments and the company’s strong market presence support the Buy rating, with expectations of continued growth and value creation.