Update shared on18 Sep 2025
Fair value Increased 2.09%Hesai Group’s consensus price target was modestly raised to $29.09 as analysts highlight robust order wins—including a key deal with Mercedes-Benz—increased ADAS LiDAR adoption, and new market opportunities, all underpinning stronger earnings outlooks.
Analyst Commentary
- Bullish analysts cite strong order wins from both domestic and international OEMs, including a notable breakthrough with Mercedes-Benz, as key catalysts for future growth.
- Hesai’s expanding role as a supplier of Advanced Driver Assistance Systems (ADAS) LiDAR, particularly for the photovoltaics sector, is expected to position the company as a global leader beginning in 2025.
- Upward earnings revisions for 2025–2027 reflect robust Q2 performance, stronger market share, and ongoing LiDAR adoption, particularly in China.
- New market opportunities such as the integration of LiDAR into robotics, including lawnmowers and smart home appliances, are anticipated to drive additional revenue streams starting in 2026.
- Overseas project wins are expected to enhance margins and diversify revenue, supporting a more optimistic outlook on future profitability.
What's in the News
- Hesai expanded its production agreement with a leading U.S. robotaxi company, securing exclusive supplier status for both long- and short-range lidars, with the agreement valued over $40 million and deliveries through 2026; maintains 61% global market share in L4 lidar.
- Multiple lock-up agreements were disclosed, restricting trading of over 32 million Class A and B Ordinary Shares until March and September 2026 for cornerstone investors and controlling shareholders.
- Completed a follow-on equity offering raising HKD 4.16 billion with a new market listing; separately filed to raise up to HKD 4.46 billion via a similar offering.
- Showcased new high-performance products including the ETX ultra-long-range lidar and solid-state FTX at IAA Mobility 2025, highlighting major technological advancements and OEM adoption; mass production of ETX expected in 2026.
- Announced continued exclusive short-range lidar supply for Motional’s IONIQ 5 robotaxi and supply agreements to Agtonomy and Alpha Werke for autonomous farming, reinforcing leadership across autonomous driving and agricultural robotics sectors.
Valuation Changes
Summary of Valuation Changes for Hesai Group
- The Consensus Analyst Price Target has risen slightly from $28.49 to $29.09.
- The Future P/E for Hesai Group has significantly fallen from 28.38x to 4.04x.
- The Discount Rate for Hesai Group remained effectively unchanged, moving only marginally from 8.43% to 8.46%.
Disclaimer
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