Hesai: Goldman Sachs raises Buy rating and PT to $36 from $26.3.

Hesai: Goldman Sachs raises Buy rating and PT to $36 from $26.3.

Hesai Group (HKG: 2525, NASDAQ: HSAI), the leading LiDAR sensor manufacturer, has received a significant boost from Goldman Sachs, which has upgraded the stock to a Buy rating and increased its price target to $36 from $26.3.

The upgrade comes on the heels of Hesai's strong debut on the Hong Kong Stock Exchange, where its shares climbed 11 percent to HK$236.2 per share, reaching a market capitalization of HK$36 billion. The company raised HK$4.16 billion ($535 million) through the listing, the largest in the global LiDAR industry to date LiDAR maker Hesai surges on Hong Kong stock market debut^[1].

Goldman Sachs analysts cited Hesai's strong financial performance and robust growth prospects as reasons for the upgrade. The company reported non-GAAP net income of about RMB 13.7 million ($1.9 million) and operating cash flow of RMB 63 million in 2024, becoming the world's first publicly listed LiDAR manufacturer to achieve annual profitability and positive operating cash flow LiDAR maker Hesai surges on Hong Kong stock market debut^[1]. Additionally, Hesai delivered 501,900 LiDAR units in 2024, representing a 126 percent year-on-year increase.

The upgrade also reflects the increasing demand for LiDAR technology in the automotive and robotics sectors. Hesai's LiDAR products have been deployed in millions of vehicles, making advanced safety and intelligent technologies accessible to the public LiDAR maker Hesai surges on Hong Kong stock market debut^[1]. The company recently announced a $40 million order from an unnamed US robotaxi firm, marking its second LiDAR order announcement from a US company this month China's Hesai rises in Hong Kong share debut as lidar-sensor maker raises US$531 million^[2].

Hesai's production facilities, including the Hertz plant in Hangzhou and the Maxwell Global R&D and Smart Manufacturing Center in Shanghai, are well-positioned to meet the growing demand for LiDAR products. The company plans to allocate about 50 percent of the net proceeds from the listing to R&D investments and 35 percent to production capacity expansion LiDAR maker Hesai surges on Hong Kong stock market debut^[1].

Investors should take note of Goldman Sachs' positive outlook on Hesai, as the upgrade suggests a strong belief in the company's ability to continue its growth trajectory. However, it is essential to conduct thorough research and consider the risks associated with investing in the LiDAR sector and the broader automotive industry.