Seeing Machines Ltd's (AIM:SEE, OTC:SEEMF) collaboration with French car parts giant Valeo will boost the former's artificial intelligence and machine learning capabilities.
That's according to City broker Peel Hunt, which repeated its 'buy' recommendation and 12p price target for stock in the UK eye-tracking specialist, whose technology is quickly becoming the standard for in-car safety.
On Monday, Seeing Machines announced a tie-up with Valeo that will see the former take on the latter's artificial intelligence business Asaphus Vision in a $6 million deal.
This partnership will help Seeing Machines and Valeo improve car safety systems. Valeo makes high-quality cameras for cars, and Seeing Machines has advanced technology to monitor drivers.
Peel said the deal is unlikely to alter Seeing Machines' cash runway 'materially' over the next two years, particularly after recently landing a $16.5 million deal with trucking giant Caterpillar.