Peel Hunt reaffirmed its buy rating on Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) after the advanced computer vision technology said it is on course for a cash break even in the year ahead.
Analysts cited Seeing Machines’ sequential production growth in the third quarter and “the rollout of its largest contract with the Volkswagen Group (XETRA:VOW)” as key drivers of Seeing Machines’ investment thesis
Peel Hunt anticipates further production increases in the fourth quarter “as it expands the market reach of its leading cabin monitoring technology, utilising a single camera in the rear-view mirror across more models”.
“The number of monitoring connections has increased to 59,706, in line with our expectations,” added the broker.
Peel Hunt gave the stock a 12p price target. Shares flew 14% higher on Tuesday following publication of Seeing Machines’ third-quarter results.