Pony AI Inc.: Strategic Growth and Global Expansion Drive ‘Buy’ Rating

Analyst Ming-Hsun Lee from Bank of America Securities reiterated a Buy rating on Pony AI Inc. Sponsored ADR (PONY – Research Report) and increased the price target to $21.00 from $17.70.

Ming-Hsun Lee has given his Buy rating due to a combination of factors that highlight Pony AI Inc.’s growth potential and strategic advancements. The company reported a significant increase in revenue for the first quarter of 2025, driven by a 200% year-over-year growth in robotaxi services, indicating strong demand and market presence. Despite a decline in gross profit margin, the reduction in R&D expenses and strategic investments in their Gen-7 vehicles suggest improved operational efficiency and future profitability.
Furthermore, Pony AI’s plans to expand its robotaxi fleet to 1,000 units by the end of 2025 and its strategic alliances with major companies like Uber and a leading Singaporean transportation firm underscore its commitment to global expansion. The anticipated mass production of Gen-7 vehicles, which are more cost-effective due to reduced autonomous driving kit and LiDAR costs, is expected to enhance profitability. These developments, along with an adjusted price objective of USD 21, reinforce the Buy rating as Pony AI is poised for substantial growth and market penetration.