Goldman Sachs analyst Allen Chang maintained a Buy rating on Pony AI Inc. Sponsored ADR today and set a price target of $26.00.
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Allen Chang has given his Buy rating due to a combination of factors that highlight Pony AI’s strategic advancements and growth potential in the autonomous vehicle sector. The company has recently obtained a permit to offer fully driverless commercial Robotaxi services in the Shanghai Pudong New Area, which marks a significant milestone in its commercialization efforts. This expansion into Shanghai, alongside its operations in other major tier-1 cities like Beijing, Shenzhen, and Guangzhou, underscores Pony AI’s robust market presence and potential for revenue growth.
Moreover, Pony AI’s commitment to technological innovation is evident in its 7×24 Robotaxi testing across Beijing, Shenzhen, and Guangzhou, which enhances operational efficiency and revenue per vehicle by extending service hours. The introduction of the Gen-7 Robotaxi, developed in collaboration with major automotive manufacturers, promises lower hardware costs and improved software capabilities, positioning Pony AI for enhanced profitability. These strategic initiatives reflect a positive outlook on the company’s ability to scale its operations and improve its economic metrics, justifying the Buy rating.
Chang covers the Technology sector, focusing on stocks such as Interlink Electronics, Kingdee International Software Group Co, and ZTE. According to TipRanks, Chang has an average return of 15.3% and a 63.64% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $21.00 price target.