Morgan Stanley Maintains a Buy on WeRide (WRD), Sets a $13 PT

WeRide Inc. (NASDAQ:WRD) is one of the best oversold NASDAQ stocks to buy now. Analyst Tim Hsiao from Morgan Stanley maintained a Buy rating on WeRide Inc. (NASDAQ:WRD) on May 22 and set a $13.00 price target.

Why WeRide Inc. (WRD) Crashed On Wednesday

A pick-up and delivery truck speeding down a busy city street.

The analyst based the rating on the company’s potential in the autonomous vehicle market, maintaining an optimistic outlook on its long-term prospects despite near-term uncertainties in the robosweeper and robobus sectors.

The analyst is particularly optimistic about the robotaxi segment, stating that WeRide Inc.’s (NASDAQ:WRD) continued expansion in China and recent project breakthroughs with Uber position it well to capitalize on its first-mover advantage in Level 4 autonomous driving.

While Hsiao acknowledged that WeRide Inc. (NASDAQ:WRD) may see share price volatility in the short term, he stated that he sees considerable upside potential, especially as the focus of the market moves back to robotaxis. The firm reasoned that the unchanged expectations for robotaxis and the expected breakeven in 2027 further support the constructive rating.

WeRide Inc. (NASDAQ:WRD) is headquartered in Guangzhou, China, and develops an autonomous driving technology platform. The company offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions. Its offerings also include smart services in online ride-hailing, environmental sanitation, on-demand transport, and urban logistics.

While we acknowledge the potential of WRD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XXXX and that has 100x upside potential, check out our report about this cheapest AI stock.

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