Morgan Stanley Maintains Overweight on WeRide (WRD) Stock, Cuts PT
On May 22, Morgan Stanley cut the price target on WeRide Inc. (NASDAQ:WRD) stock from $23 to $13 but kept its Overweight rating on the shares.
Tim Hsiao from Morgan Stanley has lowered WeRide’s price target as he sees high volatility in the Chinese robotaxi market. The company posted only a 1.8% revenue increase in Q1 2025, indicating slower growth overall. WeRide faces rising competition in the autonomous driving market, especially from aggressive OEMs entering the Robotaxi business.
WeRide Inc. (NASDAQ:WRD) is focusing on the longer run with its global expansion. The company has collaborated with Uber, securing an additional $100 million in equity investment and agreeing to provide global taxi services in 15 new cities. The company expanded its services in the UAE, with the first driverless Robotaxi testing in Abu Dhabi. WeRide now has an autonomous mobility service in three cities in China after launching its service in the central area of Guangzhou. The company is also entering European countries, including Switzerland, Spain, and France.
However, Hsiao has cut its 2025-2026 volume forecasts for WeRide’s Robobus and Robosweeper businesses. The analyst believes the WRD’s “severe share price movements” over the past three months reflect the volatility in China’s robotaxi market. Despite this projection, the analyst remains constructive on WeRide’s long-term outlook and collaboration with Uber overseas.
WeRide Inc. (NASDAQ:WRD) offers autonomous driving products and services for different markets, addressing transportation needs across a range of use cases on open roads, including in the mobility, logistics, and sanitation industries. Its leading products and services include Robotaxi, Robobus, Robovan, and Robosweepers.
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