Hesai Group (HSAI) is back in focus after reporting first quarter 2026 results, securing a lidar supply role for Mercedes-Benz Level 3 models, and outlining new lidar technologies and revenue guidance.

Despite the Mercedes-Benz lidar supply agreement and new product launches, short term sentiment has softened, with the 7 day share price return down 15.77% and the 90 day share price return down 27.99%, while the 3 year total shareholder return of about 1.5x indicates that longer term holders have seen gains.

If you are watching how lidar and automation reshape transport, it can also help to broaden your watchlist with other robotics focused opportunities such as 32 robotics and automation stocks

So with Hesai now profitable, guiding for 20% to 27% Q2 revenue growth and trading at a discount to both analyst targets and some intrinsic estimates, is the recent share price weakness a potential opportunity, or is future growth already reflected in the current valuation?

Most Popular Narrative: 25.2% Undervalued

Hesai Group's most followed narrative pegs fair value at $27.07 versus the recent $20.25 close, framing the stock as materially discounted in that storyline.

Hesai’s valuation is increasingly supported by tangible execution and forward visibility rather than expectations alone. Following strong 4Q25 results, management reiterated a confident outlook, underpinned by stable gross margins driven by scale efficiencies and ongoing technology-led cost reductions. This combination is critical, as it signals that growth is not coming at the expense of profitability, but alongside improving unit economics.

Curious what kind of revenue ramp, margin profile, and earnings curve sit behind that gap between price and fair value? The narrative leans on volume guidance, product mix shifts, and profitability staying intact as lidar and robotics scale together.

Result: Fair Value of $27.07 (UNDERVALUED)

However, you still need to weigh risks such as geopolitics affecting international expansion and any slowdown in lidar adoption across automotive and robotics programs.

Another View: Higher Expectations In The Multiple

There is a catch. On earnings, Hesai trades on a P/E of 45.7x, versus 17.7x for the US Auto Components industry and a fair ratio of 40.1x. That premium suggests the market is already baking in a lot of growth, which may limit the margin for error.

Next Steps

With mixed signals across valuation, growth expectations, and sentiment, the real question is how the trade off between risks and rewards looks to you today. Take a moment to review the data yourself, stress test your assumptions, and then weigh the 4 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.