CMBI Cuts Hesai US Target Price by 14%, Expects SGI Ramp-Up to Serve as New Share Price Catalyst

Deep News10-27

CMBI has released a research report maintaining its "Buy" rating on Hesai Group (NASDAQ: HSAI), but lowered its US target price by 14%, from US$29.3 to US$25.2, citing slowing end-market automobile demand.

CMBI noted that due to weakening overall automotive market demand, the bank has correspondingly reduced its shipment assumptions for the company's ADAS LiDAR products, and cut its revenue forecasts for fiscal years 2026 to 2028 by 16% to 30%, to RMB 3.7 billion, RMB 4.8 billion, and RMB 5.7 billion, respectively. Over the same period, adjusted net profit forecasts were lowered by 27% to 37%, revised to RMB 417 million, RMB 772 million, and RMB 1.024 billion, respectively.

Even though short-term financial metrics are under pressure, CMBI remains firmly bullish on Hesai's overall industrial competitiveness over the medium to long term. The bank emphasized that as the company's strategic growth initiatives (SGI) gradually ramp up and materialize, they are expected to inject new catalytic momentum into the share price in the future.

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