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Investing.com - Goldman Sachs raised its price target on Hesai Group (NASDAQ:HSAI) to $36.00 from $26.30 while maintaining a Buy rating, citing expanding LiDAR adoption in China and upcoming global production. The stock has shown remarkable momentum, delivering a 110.2% return year-to-date and trading near its 52-week high of $30.44. According to InvestingPro analysis, which offers comprehensive valuation metrics and 18 additional investment tips, the stock currently trades at a significant premium with a P/E ratio of 275.59.
The firm expects overseas ADAS LiDAR volume to reach 3 million units by 2030, comparable to China’s projected 2025 volume. Goldman Sachs estimates that by 2030, overseas ADAS customers will contribute 10% of Hesai’s volume, 20% of revenue, and 23% of gross profit, with margins 10 percentage points higher than domestic products. The company maintains strong financial health with an InvestingPro Financial Health Score of 2.5 (GOOD) and a current ratio of 3.18, indicating solid liquidity.
Goldman Sachs forecasts Hesai’s revenue to reach 14 billion yuan and net profit to hit 3 billion yuan by 2030, representing a 21% net margin. The firm raised its 2026-2027 net profit estimates by 11%-17% after factoring in overseas ADAS contribution, a new U.S. robotaxi contract, and higher China robotaxi total addressable market. Current revenue growth is robust at 36.5% over the last twelve months, with analysts projecting 58% growth for the current fiscal year. Discover more detailed growth metrics and forecasts with a InvestingPro subscription, including access to the comprehensive Pro Research Report available for over 1,400 US stocks.
The updated price target is based on a 20x price-to-earnings multiple on 2030 EPS, discounted back to 2026 with an 11% cost of equity, compared to the previous valuation of 30x 2026 EPS discounted to 2025 with a 13% cost of equity.
Goldman Sachs also introduced an H-share target price of HK$281 for Hesai, implying 23% upside, and initiated coverage of the H-share with a Buy rating while reiterating its Buy rating on the ADR.
In other recent news, Hesai Group reported a strong performance in its Q1 2025 earnings call, with a 46% year-over-year revenue increase to RMB 525.3 million and a significant reduction in net loss by 84% to RMB 70.5 million. The company also achieved a notable surge in shipments, with nearly 200,000 units shipped, representing a 300% year-over-year increase. Additionally, Hesai Group expanded its production agreement with a leading U.S.-based robotaxi company, now valued at over $40 million, covering lidar deliveries through the end of 2026. Hesai has been selected as the exclusive lidar supplier for both long-range and short-range systems for this unnamed company. Furthermore, Hesai has been recognized as the exclusive short-range lidar supplier for Motional’s all-electric IONIQ 5 robotaxi. In regulatory news, Hesai Group received a notice from the China Securities Regulatory Commission regarding its proposed global offering and dual primary listing on The Stock Exchange of Hong Kong Limited. The company plans to proceed with this offering and listing, subject to necessary approvals and market conditions.
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