Citigroup has released a research report, assigning WeRide Inc. (00800) a target price of HK$39.6 with a "Buy" rating. The firm has initiated a 90-day positive catalyst observation period for WeRide, based on several considerations.
These factors include a potential funding round for Waymo in the first quarter of this year, which carries an implied valuation of 280 times the 2025 price-to-sales ratio and could lead to a revaluation of WeRide. Additionally, investor confidence is growing that WeRide may be included in the Hong Kong Stock Connect (Southbound) scheme as early as June this year.
Furthermore, technological competition between the US and China may prompt the Chinese government to introduce more proactive ADAS/robotaxi policies. WeRide's capital-light business development is also progressing favorably.
Comments