Goldman Sachs projects positive EBITDA and net income by 2030.
Shares of Pony AI Inc. surged more than 5% on Monday afternoon, reaching nearly two-week highs, following two bullish analyst calls from Wall Street.
The autonomous-driving company, which specializes in robotaxi and robotruck services, has seen its retail sentiment on Stocktwits turn ‘extremely bullish.’
BofA Securities analyst Ming Hsun Lee initiated coverage on Pony AI with a ‘Buy’ rating and a price target of $18, implying an upside of approximately 30% from current levels.
Lee highlighted Pony’s leadership in large-scale commercialization of autonomous mobility, supported by its proprietary Virtual Driver technology that combines in-house software, hardware, and services.
This, the analyst said, positions the company for reliable and cost-effective autonomous solutions in diverse conditions. Lee also cited continued favorable Chinese government policies supporting robotaxi and robotruck services as a key growth driver.
On Sunday, Goldman Sachs analyst Allen Chang also initiated coverage, giving Pony AI a ‘Buy’ rating and a price target of $19.60.
Chang emphasized the company’s leadership in Level 4 autonomous mobility, particularly in China, where it operates a fleet of robotaxis and robotrucks.
Pony is one of the first companies to operate fully driverless robotaxis in four tier-1 Chinese cities, with the necessary regulatory permits in place, according to Chang.
Goldman Sachs expects strong growth in the coming years, forecasting a 27% revenue compound annual growth rate (CAGR) from 2024-2027 and a 158% CAGR from 2027-2030, with accelerated fleet expansion. The firm projects positive earnings before interest, taxes, depreciation, and amortization (EBITDA) and net income by 2030.
On Stocktwits, retail sentiment surged to 'extremely bullish' levels, with one user highlighting the stock’s attractiveness compared to established rivals like Tesla, particularly given its lower price-to-earnings (P/E) ratio.
Since its Nasdaq debut in late November, Pony AI has garnered substantial retail attention, with its following on Stocktwits increasing by over 900%.
Despite recent gains, Pony AI’s stock remains down 7.8% from its debut, but the company’s partnerships with Toyota and GMTC, along with its fleet of 250 robotaxis and 190 robotrucks, are seen as pivotal in its path to leadership in autonomous driving in China.
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