Unitree Jumps 7.7% After JPMorgan Raises Rating to Overweight, Lifts Target to 995 Yuan

Raised two notches from underweight to overweight

Price target more than tripled, from 300 yuan to 995 yuan

Focus turns to whether physical AI can successfully integrate software and hardware

JPMorgan Chase on Oct. 26 raised its rating on Chinese robotics company Unitree by two notches to overweight from underweight.

Chinese financial media outlets including Cuifeng Trading Platform and Sina Finance reported that JPMorgan, in a report released the same day, also lifted its price target to 995 yuan from 300 yuan. Based on Unitree's Oct. 23 closing price of 624 yuan, that implies about 60% upside.

Unitree shares rose 7.69% to close at 672.00 yuan on Oct. 26 on Shanghai's STAR Market, the technology board often dubbed China's Nasdaq.

JPMorgan had previously maintained a cautious stance on Unitree and other listed Chinese robotics companies, arguing they were overly focused on hardware and weak in software and developer-platform development.

But the bank said it reassessed Unitree after listening to speeches by founder and Chief Executive Officer Wang Xingxing and other executives, and after reviewing the company's humanoid robot lineup at the 2026 World Physical Conference in Hangzhou. Wang said physical AI could open a new breakthrough in technological growth in as little as one to two years, or within two to three years at the latest. He had previously said it could take as long as 10 years.

"Unitree is further enhancing its strategic value as robots, developers and real-world data form an ecosystem cycle," JPMorgan wrote. It added that the slowdown tied to AI's data bottleneck has improved significantly from the past.

JPMorgan said the future of Unitree and other robotics companies will depend on whether they can successfully integrate AI software and hardware. It added that a key factor will be whether software for physical AI models can effectively combine with hardware elements such as safety, durability, batteries and sensors.

Lee Mi-ah, Hankyung.com reporter mia@hankyung.com