- Roth Capital analyst Suji Desilva initiated coverage of AEye Inc LIDR with a Buy rating and $15 price target, implying a 257% upside.
- The analyst notes that AEye recently came public through a merger with special purpose acquisition company CF Finance Acquisition Corp. III that was announced in February 2021 and subsequently closed in August 2021.
- Desilva expects AEye's advanced iDAR platform to gain traction in higher-order L3/L4/L5 ADAS/AV auto models, emphasizing more sophisticated highway driving safety.
- Further, he believes a significant advantage of AEye's business model is using a high margin licensing/royalty-based revenue model with potential for gross margins of 80%-plus at scale.
- The analyst also thinks AEye has secured a Tier-1 automotive partnership with Continental affirming, in his view, the strength of the company's lidar technology platform.
- Price Action: LIDR shares closed higher by 5.95% at $4.45 on Monday.
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