Hesai Group (NASDAQ:HSAI) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

Shareholders will be ecstatic, with their stake up 63% over the past week following Hesai Group's (NASDAQ:HSAI) latest third-quarter results. It was a pretty good result, with revenues of CN¥539m, and Hesai Group came in a solid 10% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Hesai Group

After the latest results, the eight analysts covering Hesai Group are now predicting revenues of CN¥3.33b in 2025. If met, this would reflect a huge 74% improvement in revenue compared to the last 12 months. Hesai Group is also expected to turn profitable, with statutory earnings of CN¥0.87 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥3.36b and earnings per share (EPS) of CN¥0.23 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$7.06, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Hesai Group, with the most bullish analyst valuing it at US$9.85 and the most bearish at US$5.23 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Hesai Group's rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 36% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hesai Group to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hesai Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$7.06, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hesai Group going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Hesai Group that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.