Bernstein analysts believe shares of Horizon Robotics present an attractive buying opportunity, arguing that the market is overly concerned about automakers developing in-house chips for smart-driving systems.

Key Points from Bernstein's Note:

• Competitive Advantage: With intense competition expected in China's auto market next year, Horizon’s highly cost-effective solutions will become even more appealing to automakers seeking to differentiate via advanced driver-assistance and autonomous driving features.
• In-House Chip Concerns Overblown: While large automakers like BYD and Geely have the scale to pursue in-house chip development, Bernstein notes their chips are “at least one or two generations behind” leading third-party products like Horizon’s. Mass production for such in-house chips is unlikely before 2027.
• Rating and Target: Bernstein maintains an “Outperform” rating on Horizon Robotics with a price target of HK$15.00. The stock was last trading at HK$8.00.