Target price: HK$520! BOCHIC covered Momenta (06880) for the first time and gave it a buy rating

The Zhitong Finance App learned that recently, BOCI released the latest research report, covering MOMENTA-W (06880) for the first time and giving it a purchase rating. The target price is HK$520.

According to BOC International, Momenta is a leading physical AI technology supplier. It has mature commercialization capabilities for L2/L2++ ADAS (i.e. L2 level mass business), and its upward potential for L4 autonomous driving is underestimated.

Bank of China International wrote in the research report: Momenta is fully prepared to seize the global wave of intelligent driving upgrades with its leading position in the L2/L2++ ADAS (L2 level business) field, a scalable software-driven profit model, and a reliable development roadmap leading to L4 Robo-X. The company has verified its commercialization model through passenger vehicle (PV) deployment and is building a differentiated physical AI platform centered on a unified data flywheel shared across L2 mass production operations and L4 Robo-X applications. Bank of China International anticipates that Momenta's expanding vehicle ownership and deep OEM coverage will bring strong revenue growth for many years; while the acceleration of Robovan commercialization is expected to open up the next phase of upward space before Robotaxi and the wider range of physical intelligence opportunities are scaled up.

“We forecast the company's annual revenue for 2026-2028E to be RMB4 billion/ $7 billion/ RMB12.6 billion, respectively. Using 15 times the 2027E market sales ratio (P/S), we arrived at a target price of HK$520, which covered and gave a buy rating for the first time.” According to the research report.

Bank of China International believes that Momenta's “one flywheel, two legs” strategy can support the expansion of physical AI in multiple scenarios: the L2/L2++ mass-produced passenger car business contributes cash flow, OEM channels, and large-scale real driving data, while L4 Robo-X applications are reused in more complex scenarios based on the same core architecture. The move will create synergies in model iteration, engineering reuse, and infrastructure efficiency, and will support the company's continued expansion into the broader field of physical AI in the future.

Bank of China International also said that Momenta's adoption of the L4 commercialization path led by Robovan is a pragmatic move. Because its monetization potential is more clear, the company's unplanned solution capabilities, massive real-world data, and engineering efficiency are expected to support the rapid expansion of its operating scale. Robotaxi remains an important long-term business and has contributed significantly to the upward valuation.