Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) is on track for full-year targets this year and on course for profitability next year, analysts at Stifel say.
Driven by new European rules mandating driver monitoring technology in cars from later this year, Seeing Machines should enjoy a solid end to the year, Stifel said in a note on Monday.
Alongside this, "we think the company has a comfortable level of cash to reach run-rate profitability in 2025", the bank added, given the new regulatory rules and as shipments of its latest aftermarket driver monitoring system get underway.
Seeing Machines confirmed underlying revenue growth in the six months to December was up 28% to US$25.6 million (£20.09 million) earlier on Monday.
Production for a US$82 million interior cabin monitoring program with a large German automotive manufacturer was also reported to have started.
This is ahead of the introduction of driver monitoring rules requiring new motor vehicles in the European Union be fitted with such technology from July this year.
“The opportunity for the company has never been as clear as it is today,” Stifel said, highlighting Seeing Machines’ US$22.2 million cash position.
“Investors should take advantage of the share price as it accelerates toward profitability,” the bank added, reiterating a share price target of 15p.
Shares were down 0.8% at 5.10p on Monday.