Seeing Machines Ltd (AIM:SEE, OTC:SEEMF)’s 16th new contract in the automotive sector has reassured Stifel analysts of the AI-based monitoring technology group’s investment thesis.
Stifel noted that the initial US$15 million contract “was one of the few awards we have seen in the industry in recent months”, adding that it comes from an existing tier-one customer for an existing OEM in Europe.
“We continue to think the market is still in the early innings of mass-market adoption with Seeing Machines in pole position and undervalued,” said analysts.
Stifel's analysts were also impressed with Seeing Machines’ production volumes in the first quarter.
The report highlighted remarkable year-on-year growth in automotive production volumes, with a 98% increase to 222,138 units in the first quarter, up from 112,077 units in the same period the previous year.
Stifel reiterated a 'buy' rating on Seeing Machines stock with a share price target of 15p against a publication price of 5.91p.