Goldman Sachs analyst Allen Chang predicts that Pony AI Inc. (NASDAQ:PONY), an autonomous vehicles startup out of Guangzhou in China, will do exceptionally well by 2025.
He assumed coverage today of the robotaxi share with a “buy rating” and a $19.60 target price, which indicates a potential 40 percent upside from here.
Chang is bullish about Pony AI’s stock, as the company has committed to expanding their fleet of robotaxis by next year from more than 250 currently to around 1,000.
Pony AI stocks could be worth a higher multiple
Pony AI shares were listed on the Nasdaq Stock Exchange at a value of $13 per share.
Allen Chang is bullish about this self-driving vehicle company, as it has already made strides in China. It could become the country’s leading robotaxi service provider.
In a Monday research note, he said that Pony AI was the leader in L4 autonomy in terms of fleet size. It offers robotaxi and robotic truck services throughout China.
Chang expects Pony AI to have a higher multiple, as the company continues its commercialisation of its fully driverless roboticaxis.
PONY does, however, not pay a dividend in writing.
What the US expansion could mean for PONY
Allen Chang believes that expansion into the United States will unlock the next wave in growth for Pony AI, which has already attracted customers to its mobile app within its own country.
In his latest report, he said that road-testing reports showed that Pony AI’s cars had safety metrics exceeding those of their local peers in China. They also outperformed human-driven vehicles.
James Peng, the company’s CEO, also sees the US debut of the company as “hugely significant”.
In a recent CNBC interview, he revealed that PONY would focus on diversifying their supply chain in addition to research and development.
Goldman Sachs bullish note from Monday has pushed Pony AI stock to the upside.
Pony AI Inc. could reach 158% CAGR
Goldman Sachs expects Pony AI will aggressively expand its roboticaxi fleet and grow their revenue at a rate of 27% compound annualised over the next three year.
This is a small amount of money, considering that analysts expect PONY to hit a CAGR up to 158% from 2027 to 2030.
The company that makes self-driving cars is committed to reaching profitability by the end of the decade.
Pony AI is well positioned for expansion and monetisation thanks to partnerships with automakers and logistics firms, the investment firm said.
Note that Allen Chang’s not the only person who is uber bullish about Pony AI stock.
Bank of America analysts initiated the company’s stock with a “buy rating” last week. They said that continued fleet expansion would see them reach $18 in the next year.
This post Invest in robotaxi stock to get 40% returns by 2025 may be updated as new information becomes available.
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