Shares of Pony AI Inc (PONY) are surging 5.02% in pre-market trading on Monday, building on the momentum from the previous day's 10.38% rally. The autonomous driving technology company's stock is benefiting from a combination of positive analyst coverage and significant business developments.
The recent uptick in Pony AI's stock price can be attributed to two major factors. Firstly, Daiwa initiated coverage of the company with an Outperform rating and a price target of $20, signaling strong confidence in Pony AI's growth prospects. Daiwa analysts highlighted that robotaxi services are likely to become a major business and key revenue driver for Pony AI from 2027, as the company enters a fast-growth phase with advancements in its AI software and hardware.
Secondly, Pony AI announced on Saturday that it had received a permit to provide fully driverless commercial robotaxi services in Shanghai's Pudong financial district. This development marks a significant milestone for the company, potentially accelerating its path to commercialization in one of China's most important markets. The combination of positive analyst sentiment and tangible progress in Pony AI's business operations has fueled investor enthusiasm, leading to the current pre-market surge.
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