Hesai Group (NasdaqGS:HSAI): Valuation Insights Following Profit Surge, Upgraded Outlook, and New Li Auto Deal

Hesai Group (NasdaqGS:HSAI) just raised its full-year earnings guidance and posted third-quarter results that highlight a sharp swing to profitability. At the same time, the company landed a new exclusive lidar supply deal with Li Auto.

See our latest analysis for Hesai Group.

Fresh off new exclusivity with Li Auto and upwardly revised earnings guidance, Hesai Group’s stock continues to trade with significant volatility. While the share price dipped roughly 29% over the last month, its one-year total shareholder return stands at an impressive 225%. This shows that longer-term momentum remains firmly positive.

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With shares still trading far below analyst targets despite strong fundamentals, is Hesai Group offering real value to investors, or has the market already priced in all the growth ahead?

Most Popular Narrative: 48.4% Undervalued

Compared to its last close of $15.43, the most followed valuation narrative places Hesai Group’s fair value much higher, signaling a substantial potential upside. Attention is now turning to the business shifts and quantitative assumptions driving this optimistic forecast.

Expanding into the global market with new design wins, including a top European OEM, highlights the company's growing international presence and potential revenue diversification. Continued robotics market penetration, including partnerships for robotic applications and the successful launch of the JT Mini LiDAR, could have a substantial positive impact on earnings.

Read the complete narrative.

Just what kind of aggressive growth and rapid margin expansion lies behind this eye-catching valuation? Uncover which future milestones and forecast surprises the narrative hinges on and why this story may not be what it seems. The next clue is all about analyst bets carved deep into future profit projections.

Result: Fair Value of $29.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering regulatory uncertainty and reliance on key clients could quickly shift Hesai’s growth outlook if conditions change or if partnerships falter.

Find out about the key risks to this Hesai Group narrative.

Build Your Own Hesai Group Narrative

If you think there’s another angle to the story or want to dive into the numbers yourself, you can easily craft your own perspective in just a few minutes. Do it your way.

A great starting point for your Hesai Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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