Analyst Elizabelle Pang of DBS maintained a Buy rating on Hesai Group Sponsored ADR (HSAI – Research Report), with a price target of $28.00.
Elizabelle Pang’s rating is based on Hesai Group’s strong leadership position in the global lidar market, where it holds a significant market share of 40-50%. The company has successfully secured partnerships with 21 OEMs across approximately 100 vehicle models, including exclusive agreements with prominent brands like Li Auto and Xiaomi. Hesai is also a key supplier for major robotaxi companies such as Baidu, WeRide, and Zoox, highlighting its integral role in the autonomous mobility sector.
Despite the challenges posed by regulatory headwinds, such as being added to the US Department of Defence 1260H List, Hesai’s business operations remain largely unaffected. The company’s robust revenue streams from ADAS and autonomous mobility, along with its projected production capacity increase to 2.0 million units by 2025, further support the Buy rating. Additionally, the average selling price of Hesai’s lidar products is expected to remain above its peers, reinforcing its competitive advantage in the market.