BOC International has released a new research report initiating coverage on MOMENTA-W (06880) with a Buy rating and a price target of HK$520. The brokerage highlights Momenta as a leading physical AI technology provider with mature L2/L2++ ADAS commercialization capabilities, while noting the upside potential of its L4 autonomous driving business is currently undervalued.

In the report, BOC International states that Momenta is well-positioned to capture the global wave of intelligent driving upgrades, citing its leading position in L2/L2++ ADAS, a scalable software-driven profit model, and a credible roadmap toward L4 Robo-X applications. The company has already validated its commercialization model through passenger vehicle (PV) deployments and is building a differentiated physical AI platform centered on a unified data flywheel shared across both L2 production business and L4 Robo-X use cases.

BOC International projects that Momenta's expanding vehicle base and deep OEM coverage will drive robust revenue growth over multiple years. Meanwhile, accelerated Robovan commercialization is expected to unlock the next phase of upside before Robotaxi and broader embodied intelligence opportunities reach scale. The report forecasts 2026-2028E revenues of RMB 4 billion, RMB 7 billion, and RMB 12.6 billion, respectively. Using a 15x 2027E price-to-sales ratio, the brokerage derives a target price of HK$520, initiating coverage with a Buy rating.

The brokerage believes Momenta's "one flywheel, two legs" strategy supports multi-scenario expansion in physical AI. The L2/L2++ production passenger vehicle business generates cash flow, OEM channels, and large-scale real-world driving data, while L4 Robo-X applications reuse the same core architecture for more complex scenarios. This approach creates synergies in model iteration, engineering reuse, and infrastructure efficiency, while supporting future expansion into broader physical AI domains.

BOC International also notes that Momenta's L4 commercialization path, led by Robovan, is pragmatic given its clearer monetization potential. The company's mapless solution capabilities, vast real-world data, and engineering efficiency are expected to support rapid operational scaling. Robotaxi remains an important long-term business and contributes significantly to valuation upside.