Autonomous driving know-how firm WeRide has loads of room to develop on account of its early-mover benefit within the international self-driving market, in accordance with Morgan Stanley, which introduced the agency public in an IPO final month at $15.50 a share . Analyst Tim Hsiao initiated analysis protection of Guangzhou, China-based WeRide with an obese score and a worth goal of $23, implying greater than 25% upside for the inventory versus Monday’s shut. WeRide rallied as a lot as 6% in early buying and selling Tuesday to $19.43. WeRide presents a number of driverless autos equivalent to robobuses, robotaxis and robovans, holds driverless permits within the U.S., China, the UAE and Singapore and is concerned in trial and industrial actions in 30 cities. The corporate has partnered with Uber within the UAE, and Hsiao expects its robotaxi and robovans segments to attain large-scale commercialization by 2026. Morgan Stanley estimates the worldwide autonomous driving market dimension will leap to $1.745 trillion in 2030 from $93 billion in 2025. “WeRide is a pure play in international L4+ autonomous driving,” Hsiao wrote in a 38-page report on Tuesday observe. Degree 4 autonomous driving describes when a automobile can drive in most circumstances with out a human driver, one step beneath the top-most Degree 5 designation for a totally automated automobile . Hsiao added that WeRide “can generate larger working leverage and synergies throughout merchandise than its friends, given its numerous product choices.” To make certain, the specter of tighter regulation on driverless autos is a draw back danger for the inventory, and Morgan Stanley forecasts WeRide’s earnings and money movement will stay “risky” within the close to time period, Hsiao famous. WRD ALL mountain WeRide shares since its October IPO. —CNBC’s Michael Bloom contributed to this report.
