Hesai (HSAI) Climbs 11% on Rating, PT Upgrade; Points to 16% Upside Potential

We recently published 10 Stocks Boasting 10-42% Gains. Hesai Group (NASDAQ:HSAI) is one of the best-performing stocks on Tuesday.

Hesai extended its rally to a third straight day on Tuesday, jumping 10.98 percent to close at $20.22 apiece, as investors took heart from an investment firm’s bullish initial coverage for its stock.

In a market note, China International Capital Corp. (CICC) issued an “outperform” rating for Hesai Group (NASDAQ:HSAI), with price targets of HK$182.5 and $23.5, amid its position as the only profitable and one of the leading lidar companies with self-built automated production capacity and extensive customer resources.

Hesai (HSAI) Climbs 11% on Rating, PT Upgrade; Points to 16% Upside Potential

l i g h t p o e t/Shutterstock.com

The rating also reflected CICC’s confidence that Hesai Group (NASDAQ:HSAI) would be able to achieve 3 million shipments of automotive lidar to China by 2025, and ramp it up to 10 million units by 2028, with a compound annual growth rate of 58 percent.

CICC said that growth would be supported by the robotics sector, with lawn mowers and logistics robots now becoming a new growth engine, while the overseas market is poised to accelerate.

In other recent developments, Hesai Group (NASDAQ:HSAI) swung to a net income of 256.2 million yuan in the third quarter of the year from a 70.4 million yuan net loss in the same period last year. Revenues jumped by 47.5 percent to 795.4 million yuan from 539.4 million yuan year-on-year.

The nine-month period also saw the company hitting its full-year net income target a quarter earlier, having recorded 282.71 million yuan, a reversal from the 249 million yuan net loss year-on-year.

While we acknowledge the risk and potential of HSAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HSAI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.