Hesai , the builder of lidar technology used in self-driving cars, could be in for strong gains after selling off following its U.S. initial public offering, according to Bank of America.
The bank initiated coverage of Hesai with a buy rating and a price of $14.80.
Since then, the stock has fallen more than 46%.
Despite the sell-off, analyst Jessie Lo thinks the company "deserves a valuation premium against peers, given its leading position in market share, shipment, order gain, margin, breakeven timeline, and balance sheet/cash flow management."
"We expect Hesai to ride on the ADAS [advanced driver assistance systems] industry takeoff and growing LiDAR penetration, and deliver 60% sales CAGR [compound annual growth rate] in 2023-25," she said.
Persons:
Jessie Lo, Lo, — Michael Bloom
Organizations:
Bank of America, North
Locations:
Thursday's, Hesai's U.S, China