Benzinga | Jan 11, 2022 03:08PM EST

KeyBanc Sees 81% Upside In This Autonomous Driving Technology Company

* KeyBanc analyst Todd Fowler initiated TuSimple Holdings Inc (NASDAQ:TSP) with an Overweight rating and a price target of $50, implying an upside of 81%.

* Fowler believes fully autonomous capabilities represent a "must-have" technology for the for-hire trucking industry, given the potential to lower the cost to serve and improve asset utilization.

* Additionally, the analyst thinks the company's for-hire carrier model and its Autonomous Freight Network, combined with potential expansion outside of the U.S., broadens the addressable market.

* Lastly, Fowler mentions assuming commercialization is achieved around 2024/2025 and absent regulatory hurdles, minimal additional capital may be required to fund operations.

* Related Content: Nvidia Extends TuSimple Partnership For Autonomous Trucking; Showcases Omniverse Plans.

* TuSimple is an autonomous driving technology company. The San Diego, California-based company is developing a commercial-ready, fully autonomous (SAE Level 4) driving solution for long-haul heavy-duty trucks.

* Price Action: TSP shares are trading higher by 6.46% at $27.67 on the last check Tuesday.