Stock Track | WeRide Soars 7.2% as Analysts Remain Bullish on its Autonomous Driving Technology and Early Mover Advantage

WeRide Inc. (NASDAQ: WRD), a leading autonomous driving technology company, saw its stock soar 7.2% in pre-market trading on Tuesday, November 19. The surge came on the heels of several analysts initiating coverage on the stock with bullish ratings and price targets, citing the company's strong position in the rapidly growing autonomous driving industry.

Morgan Stanley initiated coverage on WeRide with an "Overweight" rating and a $23 price target, highlighting the company's technological edge, early-mover advantage, and broad use cases across mobility, logistics, and urban cleaning services as key strengths. RBC Capital also initiated coverage with a "Buy" rating, noting WeRide's significant order backlog for 10,000 purpose-built Level 4 (L4) autonomous vehicles.

Analysts praised WeRide's strategic positioning and partnerships with automakers as factors supporting its growth prospects in the nascent but rapidly expanding autonomous driving sector. The global market for autonomous driving is expected to reach $1,745 billion by 2030, with L4 and above vehicles likely to capture a dominant market share.

However, some analysts also raised concerns about WeRide's stretched valuation, with a market cap of $4.8 billion and revenue of $55.3 million in 2023. Additionally, the company's revenue has been volatile, and significant R&D investments imply continued cash burn and potential equity dilution. Analysts suggested waiting for a better entry point in the next 6-12 months due to these valuation concerns.