Hesai’s Stock Crashes 17% Despite Record Lidar Growth and Profits
Hesai Group's stock price has been volatile despite strong business performance. The company's net income of $36.0 million surpassed annual targets, yet the stock price has plummeted. Analysts and investors are divided on their strategies.
Hesai Group's recent financial results have been mixed. While net income was $36.0 million, surpassing annual targets, Q3 earnings per share of $0.25 exceeded forecasts but revenue of $111.70 million missed projections. The company's net revenue growth was a robust 47.5% year-over-year, with lidar shipments surging by 228.9% to 441,398 units. However, the stock price has experienced a significant drop, losing 17.45% over ten trading days, including an 8.2% crash on Friday and a further 1.01% decline.
Despite these fluctuations, Hesai has secured an exclusive lidar supply agreement for all next-generation Li Auto models. This deal, along with forecasted profit improvement in 2025, has led Goldman Sachs, Morgan Stanley, and UBS to raise price targets to as high as $36.00. Institutional ownership remains strong at 48.53%, but strategies among investors are divergent. An analysis dated November 16 suggests urgent action is needed for Hesai investors, with recommendations on whether to buy or sell.
The Hesai Group's stock price depreciation can be attributed to market volatility, negative recent earnings per share, and modest revenue growth. These factors have contributed to negative sentiment among investors, despite the company's strong business performance. Analysts have slightly lowered their 2026 forecasts for Hesai, and the stock is trading well below all key moving averages and analysts' average price targets.
Hesai Group's stock price has been volatile despite strong business performance, with net income exceeding targets and lidar shipments surging. However, revenue missed projections, and the stock has experienced significant drops. Investors and analysts are divided on their strategies, with some urging urgent action. The company's future prospects remain uncertain, and investors should closely monitor the situation.
