JPMorgan Lowers Near-Term Estimates for WeRide (WRD) Citing Gradual Revenue Growth and Regulatory Hurdles

Core Viewpoint - WeRide Inc. is recognized as a promising low-priced technology stock, with analysts divided on its near-term revenue growth due to regulatory challenges, while maintaining a positive long-term profitability outlook [1][2]. Group 1: Analyst Ratings and Price Targets - JPMorgan analyst Alex Yao has lowered the price target for WeRide from $21 to $17, while keeping an Overweight rating, citing gradual revenue growth in China due to regulatory hurdles [1]. - Bank of America initiated coverage of WeRide with a Buy rating and a price target of $12, anticipating profitability by 2029 driven by international expansion and partnerships [2]. Group 2: Financial Performance - In Q3 2025, WeRide reported total revenue of 171 million RMB, marking a 144% year-over-year increase, driven by a 428% surge in product revenue and a 67% increase in service revenue [3]. - The Robo Taxi segment experienced a remarkable revenue increase of 761% to 35 million RMB, now accounting for 21% of the company's total income [3]. Group 3: Company Overview - WeRide Inc. operates as an investment holding company providing autonomous driving products and solutions across various industries, including mobility, logistics, and sanitation in China [4]. - The company has expanded its global presence, now operating in 11 countries and over 30 cities with a fleet of more than 1,600 Level 4 autonomous vehicles [3].