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Investing.com - UBS initiated coverage on Hesai Group (NASDAQ:HSAI) with a Buy rating and a $35.00 price target on Tuesday. The stock, which has surged nearly 488% over the past year and is trading near its 52-week high, currently shows a "Good" financial health score according to InvestingPro analysis.
The investment bank expects Hesai to become the world’s largest supplier of Advanced Driver Assistance Systems (ADAS) LiDAR for passenger vehicles from 2025, citing the company’s deep partnerships with leading EV startups and autonomous mobility service providers. The company’s strong market position is supported by robust revenue growth, with analysts forecasting 57% growth this fiscal year.
UBS highlighted Hesai’s recent entry into top-selling domestic OEMs’ supply chains and noted that its order win from Mercedes-Benz (OTC:MBGAF) represents a breakthrough in the overseas passenger vehicle ADAS LiDAR market.
The firm also pointed to Hesai’s entry into robotics lawnmower (RLM) LiDAR as a potential new growth opportunity for the company.
UBS projects a 32% net profit compound annual growth rate for Hesai over 2025-30 and believes the market has overlooked the company’s earnings growth potential at its current valuation of 37 times 2026 estimated price-to-earnings.
In other recent news, Hesai Technology announced a significant collaboration with Toyota (NYSE:TM), securing a design win to provide its long-range automotive lidar ATX for a new energy vehicle in China. This vehicle, part of a joint venture by Toyota, is expected to enter mass production in 2026. Hesai is also set to supply its JT series lidar sensors to Agtonomy and Alpha Werke for their autonomous farming robots, which aim to tackle challenges in the agricultural sector. In a separate development, Morgan Stanley (NYSE:MS) upgraded Hesai Group from Equalweight to Overweight, citing increased market share in China and raising its price target to $26.00. Jefferies initiated coverage on Hesai with a Buy rating and a price target of $29.30, reflecting confidence in the company’s LiDAR leadership. Meanwhile, Hesai has appealed a U.S. District Court decision regarding its designation under the National Defense Authorization Act, arguing the decision lacks factual and legal bases. These developments highlight Hesai’s expanding influence in various sectors and ongoing legal challenges.
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