BofA cuts Pony AI stock price target on valuation to $17

BofA Securities revised its price target on Pony AI Inc. shares, reducing it from $19 to $17 while maintaining a Buy rating. The autonomous vehicle company disclosed solid second-quarter 2026 results, with revenue increasing 69% year-over-year and 6% quarter-over-quarter to $36.2 million. The surge in revenue was primarily driven by a 691% year-over-year growth in Robotaxi services and an 849% increase in fare-charging revenue.

Pony AI's annual revenue now totals $110.27 million, with a market capitalization of $3.47 billion. The company's Robotruck revenue grew by 40% year-over-year. Gross profit margin for the second quarter reached 17.5%, surpassing BofA Securities' expectations due to higher Robotaxi service contributions. Research and development expenses totaled $56 million for the quarter, up 15% year-over-year. Despite the losses, the stock remains undervalued according to InvestingPro's Fair Value analysis.