Shares in Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) were marked higher in the wake of its 17th major automotive contract for its driver monitoring technology.
The eye-tracking specialist didn’t name the latest customer but said the lifetime value of the new business was US$30 million.
“With the impending regulatory deadlines for driver monitoring systems in the EU, it is no surprise to see an acceleration in the award of OEM contracts,” said broker Peel Hunt.
Under the bloc’s new General Safety Regulation, DMS will soon become mandatory on European roads.
To date, Seeing Machines has won business worth US$336 million, with most of that revenue due in the next five years.
“We believe it is still in the early stages of a regulatory-driven demand cycle for DMS/OMS technology,” said US investment bank Stifel in a note.
Stifel thinks the shares, up 0.1p at 5.2p, are “highly attractive for a market leader in a large industry”.
Peel Hunt’s target price is 12p.