Fed Governor Adriana Kugler to resign
Investing.com - Morgan Stanley (NYSE:MS) upgraded Hesai Group (NASDAQ:HSAI) from Equalweight to Overweight and raised its price target to $26.00 from $23.00. The stock, currently trading at $21.30, has shown remarkable momentum with a 365% return over the past year. According to InvestingPro data, analyst targets range from $22.06 to $37.13.
The upgrade comes as Hesai continues to gain market share in China, reaching 37% in May 2025 compared to 22% in May 2024, surpassing competitors Robosense and Huawei in year-to-date LiDAR shipments. The company maintains strong fundamentals with a 43% gross profit margin and healthy liquidity, as evidenced by a current ratio of 4.06.
Morgan Stanley raised its 2026-27 volume forecasts for Hesai based on three factors: domestic volume share gains, accelerating L2+ smart driving adoption overseas, and potential project wins from robo-taxi players and smart home robotics companies. InvestingPro analysis reveals 13+ additional insights about Hesai’s growth potential and financial health. Get the full picture with InvestingPro’s comprehensive research report.
The firm noted that near-term headwinds, including Li Auto (NASDAQ:LI)’s second-quarter volume guidance cut and BYD (SZ:002594)’s sluggish God’s Eye model sales, are largely reflected in Hesai’s current share price, with further volume upside expected from Xiaomi (OTC:XIACF), Leap Motor, and increased wallet share in BYD.
Morgan Stanley projects that 15-20% of vehicles sold outside China will be L2+ smart driving enabled by 2030, potentially making LiDAR a standard safety specification in vehicles priced above $30,000 by that year, similar to the current China market.
In other recent news, Hesai Group has filed an appeal against the U.S. Department of Defense designation, challenging a decision by the U.S. District Court for the District of Columbia. The company claims that the designation lacks factual and legal bases. In financial developments, Hesai’s first-quarter 2025 results showed strong performance with revenue meeting expectations and net profit exceeding them, largely due to improved gross margins and reduced operating expenses. Goldman Sachs has responded by raising its price target for Hesai to $23.30, maintaining a Buy rating. Similarly, Morgan Stanley increased its price target to $23 while keeping an Equal-weight rating, citing the growing adoption of LiDAR technology in advanced driver-assistance systems. Jefferies also initiated coverage on Hesai with a Buy rating and a price target of $29.30, based on projected earnings for 2030. These updates reflect the company’s ongoing developments and the analysts’ confidence in its market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.