Seeing Machines Ltd (AIM:SEE, OTC:SEEMF, FRA:M2Z) shares rose 8% to 4.5p on Monday after the AIM-listed computer vision company announced design wins with two Japanese car manufacturers, with Peel Hunt arguing the contracts underscore a strategy that could deliver significantly more value than the headline $11 million lifetime figure suggests.
Peel Hunt, which has a 'buy' rating on the stock, said it believed one of the Tier 1 suppliers through which the deals were secured was almost certainly Mitsubishi, describing the wins as validation of Seeing Machines' model as a specialist Tier 2 supplier working through established distribution relationships rather than selling direct to manufacturers.
The broker said the initial lifetime value appeared modest, but that experience in the sector showed first-time OEM relationships frequently expanded as additional models were added, meaning the long-term revenue opportunity was likely to be materially larger.
Peel Hunt also pointed to the structural dynamics of the automotive supply chain, noting that most manufacturers tend to remain loyal to existing suppliers, making new customer wins for production starting in 2028 a genuine market share gain rather than replacement business.
The broker estimated that Seeing Machines currently holds around 50% of the global driver and occupant monitoring market.
