Hesai downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Hesai (HSAI) to Equal Weight from Overweight with a price target of $15, up from $5.80. The analyst cites valuation for the downgrade following the 95% stock rally since mid-November. While solid order pipeline should provide revenue visibility “to some extent,” Hesai’s market demand on client models and mounting price pressure from car makers will likely create uncertainties, the analyst tells investors in a research note. The firm sees limited further upside to the valuation multiple.