UBS: Initiate coverage of Momenta-W(06880.HK) with a "buy" rating and a target price of HK$360.

According to the Zhitong Finance APP, UBS released a research report stating that it has initiated coverage on Momenta-W (06880.HK), the largest autonomous driving software supplier in China (based on OEM coverage rate), with a "buy" rating and a target price of 360 Hong Kong dollars. The bank believes that Momenta's technology and scale make it a natural partner for leading domestic and global automakers, helping to accelerate the transition to the era of autonomous driving. Despite facing competition, profitability challenges, and regulatory risks, its asset-light business model combined with strong revenue growth is expected to provide the company with operating leverage to generate high profit margins, supporting a higher price-to-sales (P/S) valuation.