Investing.com -- Goldman Sachs initiated coverage on DiDi Global with a Buy rating in a note on Wednesday, seeing it as a compelling opportunity in global mobility and autonomous driving.

The analysts believe DiDi is “well-positioned to capture growing global mobility opportunities” and is “at the forefront of autonomous driving.”

According to Goldman, DiDi’s current valuation, trading at just 14 times 2026 estimated domestic P/E, is “undemanding” given its forecast compound annual growth rates of 8% in revenue and 44% in earnings from 2024 to 2027.

“We expect sustained compounding of domestic profit/FCF streams, one of the fastest profit growths within our China Internet coverage,” the note stated.

The investment bank highlighted several drivers of upside, including DiDi’s expansion in lower-tier Chinese cities, growth in international mobility profits, and margin improvement from reduced user subsidies.

“Domestic GTV profit margin expansion… [is] driving profit growth,” Goldman said, adding that DiDi’s international business is “under-appreciated,” with mobility profits now “inflecting.”

DiDi’s valuation is also said to stand out. At a market cap of $25 billion and 18x FY26E P/E, the bank notes that it trades well below peers like Uber (NYSE: UBER) at $200 billion and 27x, despite similar leadership positions in their respective domestic markets.

“We believe DiDi’s valuation is attractive vs. global peers with positive risk-reward,” Goldman noted.

Goldman’s 12-month price target of $7.20 implies a potential 35% upside in the stock.