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Hesai initiated with a Buy at BofA

BofA initiated coverage of Hesai (HSAI) with a Buy rating and $14.80 price target. The firm forecasts a 60% revenue CAGR in 2023-25 for Hesai, driven by a “solid” new client and project lineup and sees “a clear breakeven timeline,” the analyst tells investors. Hesai is “a global leader in LiDAR” that now supplies to OEMs Li Auto (LI), Jiyue, Lotus, HiPhi, and Seres and will start to supply to BYD, SAIC, Changan, Leap Motor, and Xiaomi in 2024, the analyst added.

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