Bank of America has revised its price target for Hesai (HSAI, Financial), lowering it from $22 to $21 while maintaining a Buy rating. This adjustment follows the introduction of Hesai's new "Infinity Eye" lidar technology, which supports advanced driver assistance systems (ADAS) and varying levels of autonomous driving capabilities.
The investment firm continues its optimistic stance due to anticipated strong demand growth from original equipment manufacturers (OEMs) for ADAS solutions by 2025. This demand, along with potential new clients and orders in the robotics sector, could potentially enhance Hesai's earnings forecast.
As concerns about U.S. market exposure emerge, Hesai's management has indicated that revenue from the United States is expected to contribute less than 10% to the company’s total by 2025. Additionally, any applicable tariffs will be shared equally between Hesai and its clients, with each party covering 50% of the cost.
