Hesai Outlook: Weak Technicals and Mixed Fundamentals Signal a Cautious Approach

Market Snapshot

Hesai (HSAI.O) is showing signs of weakness in its technical profile with a low internal diagnostic score (0-10) of 1.91 and a strong bearish bias, suggesting investors should avoid the stock for now.

News Highlights

Texas Instruments at Bernstein Conference – Texas Instruments (TXN) highlighted its strategic plans for industrial and automotive sectors, signaling long-term growth potential. While not directly linked to HSAI.O, it reinforces broader industry trends toward tech innovation and capacity expansion.

Vodafone Idea Raises Rs 20,000 Cr – Vodafone Idea’s capital raise to fund network expansion and reduce liabilities highlights the broader theme of telecom companies strengthening financial positions. This could indirectly influence investor sentiment toward HSAI.O if similar trends emerge in its sector.

Wells Fargo Redeems $450M in Securities – Wells Fargo’s move to optimize its balance sheet could be seen as a sign of strategic capital management. While HSAI.O is not in the same industry, it reflects broader investor attention to companies managing leverage and returns effectively.

Analyst Views & Fundamentals

Goldman Sachs analyst Tina Hou recently gave HSAI.O a Strong Buy rating, but the historical performance of this single analyst is weak: a 0.00% win rate and an average negative return of -25.78%. This contrasts with the current price drop of -26.32%, where the stock appears to be trending downward.

Average (simple mean) rating score: 5.00
Weighted rating score: 0.00
Rating consistency: Dispersed – only one active analyst is involved, limiting reliability.

Key Fundamental Values

Price-to-Cash Flow (PCF): 0.05 – internal diagnostic score: 2.00
Price-to-Sales (PS): 33.24 – internal diagnostic score: 2.00
Price-to-Earnings (PE): 103.20 – internal diagnostic score: 1.00
Return on Equity (ROE): 3.20% – internal diagnostic score: 3.00
Gross Profit on Assets (GPOA): 7.83% – internal diagnostic score: 3.00

The fundamental outlook is mixed. High valuations (e.g., 103x P/E) raise concerns, while some factors like ROE and GPOA offer moderate support.

Money-Flow Trends

Recent fund-flow data shows a negative overall trend with large investors pulling back. The internal diagnostic score for fund flows is 7.72 (rated as “good”), but this hides a mixed picture:

Small investors: 49.51% inflow ratio, trend: negative
Medium investors: 52.03% inflow ratio, trend: positive
Large investors: 50.69% inflow ratio, trend: positive
Extra-large investors: 47.14% inflow ratio, trend: negative

This suggests retail investors remain cautious, while institutional money is slightly split between inflows and outflows.

Key Technical Signals

HSAI.O’s technical profile is weak, with 2 bearish indicators and 0 bullish signals over the last five days. The internal diagnostic score (0-10) for technicals is 1.91.

Recent Technical Indicators
Long Lower Shadow – Score: 1.00, historical average return: -0.51%, win rate: 35.00% – indicates bearish pressure.
Williams %R Oversold – Score: 2.82, historical average return: -0.36%, win rate: 50.00% – mixed signal, as it can signal bounce potential but is historically weak.

Recent Chart Patterns

Over the last five days, key dates highlighted include:
2025-11-18: WR Oversold triggered
2025-11-12: Long Lower Shadow identified
2025-11-13: WR Oversold
2025-11-17: WR Oversold
2025-11-14: WR Oversold

This pattern suggests a weak and volatile market, with no strong reversal signals emerging.

Conclusion

Hesai (HSAI.O) is in a precarious position. With weak technicals (1.91 score), mixed fundamentals, and inconsistent analyst ratings, the stock appears to be best left on the sidelines for now. Investors might consider waiting for a pull-back or improved momentum signals before considering a position, and should closely monitor earnings or any fundamental turnaround in the coming months.