Goldman Sachs and Bank of America endorse Hesai Group amid trade concerns

In the United States on April 24, 2025, analysts from Goldman Sachs and Bank of America showed strong support for Hesai Group, a company specializing in lidar sensors used in autonomous vehicles. Goldman Sachs predicted a target price of $20.40 for Hesai's stock, suggesting a potential upside of approximately 42%, while Bank of America adjusted its forecast to $21, still indicating an anticipated rise of about 53% from previous closing prices. The crux of both banks' reports centered around the company's ability to navigate international trade tensions effectively, particularly the ongoing tariff issues associated with the U.S.-China trade war. Management at Hesai Group disclosed that it expects revenue from U.S. operations to account for less than 10% in 2025, effectively mitigating the impact of tariffs due to the company absorbing half of the 50% tariff imposed on imports. Bank of America noted that there is a possibility that lidar products may fall under a different duty structure, thus reducing the tariff burden to 25%, which could significantly improve the company's financial outlook. Investors have been increasingly concerned about the effects of tariffs since the administration of former President Donald Trump maintained a substantial 145% duty on Chinese imports while other reciprocal tariffs were suspended. However, recent easing of tensions by Trump and Treasury Secretary Scott Bessent has instilled some optimism among investors regarding a potential resolution of these trade disputes. Investors are particularly attentive to how companies like Hesai can maintain their competitive edge and continue to meet global demand despite these challenges. Hesai Group is reportedly positioned well within the evolving autonomous vehicle market, and there is growing recognition of their lidar technology among automotive Original Equipment Manufacturers (OEMs) and consumers. Analysts, including Tina Hou from Goldman Sachs, highlighted the strong product competitiveness and leading market positioning of Hesai, suggesting that the tariff risk from the trade war is manageable. Continued innovations in pricing strategies may further support widespread adoption of their technology, underscoring a resilient business outlook in a fluctuating market environment.