Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) posted a robust set of user numbers for its driver monitoring system (DMS) despite the difficult automotive market, according to Stifel.
DMS production volumes reached 405,669 units in the financial first quarter, an 83% rise from the prior year. The American investment bank said, annualised, the figure could hit 1.9 million new units.
Stifel in a note to clients repeated its 'buy' recommendation and 11.4p target (current price 3.4p).
It noted that, after a recent drop in Seeing Machines' market worth, the company’s shares are now valued at 3.1 times its enterprise value (EV) compared to its annual sales.
This bargain-basement entry level should appeal to investors new to the story as the company is a leader in a large industry and is expected to grow steadily.
Specifically, revenue is forecast by Stifel to increase at a compound average rate of 23% per year over the next three years, with gross profit predicted to grow by 42% through the 2027 fiscal year.