NLZ
Oct 19, 2:01 PM
$WRD UBS reportedly sees unpriced “Physical AI” potential in WeRide and
$PONY, citing improving robotaxi unit economics, overseas partnerships and relatively low forward sales multiples.
Its revised 2030 market-share assumptions are:
+ China:
WeRide falls from 15% to 10%;
Pony from 30% to 20%.
+ Overseas, excluding the US:
WeRide rises from 10% to 15%;
Pony from 0% to 10%.
UBS also lowers its target sales multiple from 7.5x to 6x, citing higher capital costs. Price targets fall from:
$12 to
$8 for WRD;
$20 to
$10 for PONY.
Both retain Buy ratings.
But the framing presented by them fails to capture the breadth of WeRide’s commercial opportunity.
WeRide and Pony should receive distinct commercial analyses. Grouping them as robotaxi peers risks overlooking material differences in their businesses. UBS may address these points in its full report, I don’t know.
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