Seeing Machines Ltd (AIM:SEE, OTC:SEEMF, FRA:M2Z) is entering the decisive phase of Europe’s General Safety Regulation rollout, according to Stifel, which reiterated its 'buy' rating and 10.5p price target following Wednesday’s trading statement.
In a note titled “SEE KPIs – the ramp into GSR is real”, the broker said quarterly data confirmed that automotive original equipment manufacturer production and aftermarket sales were accelerating as the July GSR deadline approaches.
Quarterly automotive production rose 117% year on year to 578,000 units, and was up 13% on the previous quarter, reflecting increasing driver monitoring system fitment rates.
Cars on the road reached 4.8 million in the December quarter, up 67% from a year earlier, despite broader automotive market pressures.
Stifel also highlighted a rebound in Guardian aftermarket hardware sales to 3,764 units in the second quarter, up sharply from 368 units in the first quarter, with annual recurring revenue rising 4% quarter on quarter to $14.0 million.
The broker said Seeing Machines reported run-rate profitability in December and expects the March quarter to be cash EBITDA positive, excluding a recently triggered $14.1 million minimum guarantee.
Shares trade on 21 times forecast EV to cash EBITDA for 2026, with Stifel arguing the post-GSR valuation could compress to about 18 times 2027 earnings.