---
title: "UBS lowers Hesai's target price to $36, with product average price decline greater than expected"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/265635452.md"
description: "UBS lowers the target price for Hesai ADR to $36, reflecting a greater-than-expected decline in average product prices. Although the earnings forecast for this year has been raised by 22%, the earnings forecasts for next year and the year after have been lowered by 6% to 8%. The company's product sales have shifted to lower-priced ADAS LiDAR systems, resulting in a 9.9% decline in average selling price to RMB 1,790 during the quarter. The quarterly net profit was RMB 256 million, and the non-GAAP net profit was RMB 288 million, with a rating maintained at \"Buy.\""
datetime: "2025-11-13T03:32:17.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/265635452.md)
  - [en](https://longbridge.com/en/news/265635452.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/265635452.md)
---

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# UBS lowers Hesai's target price to $36, with product average price decline greater than expected

UBS released a report, raising its profit forecast for Hesai-W (02525.HK) this year by 22%, reflecting the company's gains from selling stock investments. However, the bank indicated that the decline in the average selling price of the company's products was worse than expected, lowering its profit forecast for the company for next year and the year after by 6% to 8%. The target price for Hesai (HSAI.US) ADR was reduced from $39.5 to $36, with a rating of "Buy."

The bank noted that the company's product sales continue to shift towards lower-priced ADAS LiDAR systems, resulting in a further quarterly decline in the average selling price of products by 9.9% to RMB 1,790. However, benefiting from cost and scale optimization, the quarterly gross margin remained at a healthy level of 42.1%. Along with a decrease in operating expenses and other income of RMB 173 million mainly from stock investment sales, the company's quarterly net profit was RMB 256 million, with a non-GAAP net profit of RMB 288 million

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