In a report released yesterday, Jeff Chung from Citi maintained a Buy rating on WeRide, with a price target of $15.30.
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Jeff Chung’s rating is based on WeRide’s promising growth prospects and strategic advancements in the autonomous vehicle sector. The company is set to significantly expand its robotaxi fleet, with expectations to reach 1,000 units by the end of 2025 and between 2,000 to 3,000 units by the end of 2026. This expansion is complemented by WeRide’s progress in the Middle East, particularly in Abu Dhabi and Dubai, where they aim to achieve driverless commercial operations by 2026.
Additionally, WeRide’s operational metrics are improving, with daily orders per robotaxi in Abu Dhabi projected to increase to 25 by early 2026, enhancing profitability. The company’s gross margins are also favorable, with overseas margins exceeding 50%. Furthermore, WeRide has secured a city-level robotaxi operation permit in Guangzhou, which is crucial for achieving unit economics breakeven in China. These factors collectively contribute to Jeff Chung’s Buy rating for WeRide’s stock.
According to TipRanks, Chung is a 2-star analyst with an average return of 0.0% and a 42.00% success rate. Chung covers the Consumer Cyclical sector, focusing on stocks such as BYD Co, Great Wall Motor Co, and WeRide.