Autonomous driving stock Pony AI (PONY -1.82%) can't, of course, drive its own stock higher at will. Investors sure can, however, and they did so robustly on Monday. On a rather encouraging news item from the world of stock punditry, they ended up pushing Pony AI's shares more than 7% higher in price during today's trading session. With that kind of performance, it left the S&P 500 index's 0.3% rise in the dust.
Ride the Pony, says analyst
This morning, well before market open, sprawling U.S. bank Citigroup initiated coverage of Pony AI stock.
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Happily for the company and its investors, Citi analyst Jeff Chung launched coverage with an unambiguous buy recommendation at a price target of $29 per share. Even after the pop following the news, that level is nearly 28% higher than Pony AI's market price.
The pundit wrote in his inaugural note on the self-driving car tech specialist that the robotaxi segment of this market is at an inflection point, according to reports.
He's especially bullish on the future of robotaxis in China, a major target market for Pony AI. He forecast that robotaxi penetration will rise from an anticipated 0.1% this year to a full 9% in 2030, then increase significantly to 30% five years later.
Take a ride with a peer too
Chung is generally optimistic about self-driving cabs in China. In addition to Pony AI, he initiated coverage of its peer WeRide with a buy at a price target of $15.50 per each of the company's American depositary receipts (ADRs). Of the two operators, WeRide is the one actually headquartered in China, specifically in the city of Guangzhou.
