Bernstein initiates Horizon Robotics stock with Outperform rating on smart driving dominance

Published 01/09/2025, 10:10
© Reuters.

Investing.com - Bernstein has initiated coverage on Horizon Robotics Inc (HK:9660) with an Outperform rating and a price target of HK$15.00, citing the company’s leadership position in China’s smart driving semiconductor market.

According to Bernstein analyst Qingyuan Lin, Horizon Robotics currently holds a 23% vehicle share for L1-L2 system-on-chip (SoC) and a 30% vehicle share for L2+ SoC in 2024, establishing it as the "undisputed domestic leader" in smart driving semiconductors.

The company plans to begin shipment of its first L2++ SoC in the second half of 2025 for automaker Chery, further expanding its product lineup in advanced driver assistance systems (ADAS).

Bernstein highlights Horizon’s unique hardware-software integrated model as a key competitive advantage, enabling it to offer ADAS solutions at competitive pricing while potentially reducing costs for automakers by $100-200 compared to Nvidia’s 500 TOPS solution without sacrificing margins.

The research firm projects Horizon will capture 29% of the outsourced L2+ and above SoC total addressable market by value in 2030, supported by its healthy cash balance and continued R&D investments in advanced products.

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