Morgan Stanley sees a 25% rise in the new autonomous driving game
Self-driving technology company WeRide has plenty of room for growth thanks to its first foray into the global self-driving market, according to Morgan Stanley, which brought a strong public to its IPO last month at $15.50 a share. Analyst Tim Hsiao started research on Guangzhou, China-based WeRide with an overweight rating and a $23 price target, meaning the stock is up more than 25% from Monday’s close. WeRide rallied nearly 6% in early trading Tuesday to $19.43. WeRide offers several driverless vehicles such as robobuses, robots and robovans, has driverless licenses in the US, China, UAE and Singapore and is involved in pilot and commercial operations in 30 cities. The company has partnered with Uber in the UAE, and Hsiao expects its robot parts and robovans to achieve large-scale commercialization by 2026. Morgan Stanley estimates that the size of the global autonomous driving market will jump to $1.745 trillion in 2030 from $93 billion in 2025. “WeRide is a pure play in L4+ autonomous driving globally,” Hsiao wrote in a 38-page report Tuesday note. Level 4 autonomous driving describes when a car can drive in most situations without a human driver, one step below the highest Level designation. 5 of this fully automatic car. Hsiao added that WeRide “can generate greater performance and interoperability across products than its peers, given its products.” Various.” To be sure, the threat of tighter regulation on driverless cars is a threat to the stock, and Morgan Stanley predicts that WeRide’s earnings and cash flow will remain “volatile” in the near term, Hsiao noted. WRD ALL shares of WeRide since the October IPO. —CNBC’s Michael Bloom contributed to this report.
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