OSS - One Stop Systems (OSS) - Two Autonomous Truck Program Wins

Program Wins. OSS announced two new autonomous truck program wins with a pioneer in self-driving technology and a subsidiary of one of the world's largest commercial vehicle manufacturers using Level 4 driving automation. Although details about award size, length, and customer were not provided, we believe the awards are a testament to the Company's leadership position in the fast growing autonomous truck market.Centauri. Along with the awards announcement, One Stop unveiled its new Centauri Rugged Storage and Server Platforms system. Centauri is a PCIe Gen 4 NVMe rugged storage product offering high capacity in a compact hot-swappable canister that slides into the Centauri chassis. Product shipments are expected to begin in June 2022 against confirmed purchase orders.Attractive Market Driven by Economics. As we noted in prior reports, the autonomous truck market is being driven by attractive economics, increased asset utilization and a reduction in drivers which can result in profitability doubling for trucking firms. The number of Level 4 (hub-to-hub) trucks is projected to increase from 16,000 to 1.6 million by 2030, driving the TAM for OSS to about $10 billion by 2030.OSS Leadership Position. OSS is establishing a leadership position in this vertical with products that can withstand the unique challenges presented by the autonomous truck vertical. OSS has multiple products available today for this market, with OSS solutions having logged over 100,000 miles to date, and is now shipping to three market leaders with two other large players showing a lot of interest.Maintaining Outperform. We believe OSS presents investors with a favorable risk/reward, especially in light of the Company's exciting growth potential. We are maintaining our Outperform rating and our 12-month price target of $8.00. At our PT, OSS shares would trade at 2.0x on a EV/estimated 2022 revenue and 1.8 on our 2023 revenue estimate. Read More >>