indie Semiconductor ( NASDAQ: INDI ) on Tuesday was upgraded to Buy from an investment rating of Neutral by B. Riley, citing the company’s latest acquisition of GEO Semiconductor “a highly strategic and revenue and EPS accretive portfolio addition”.
Analyst Craig Ellis, commenting on the $180M acquisition of GEO, said the deal’s revenue size and strategic fit are “a little bigger and better than expected”, and raised the target price on indie to $13 from $10.
“GEO is private, US-based, fabless and offers camera video chip processing for auto and mirror replacement cameras, surround view monitoring, smart back-up, and augmented reality displays. So, it strongly complements INDI’s image processing program, and enables radar, LiDAR, ultrasound and computer vision fusion for INDI’s ADAS systems,” Ellis wrote.
Ellis also highlighted that the deal adds non-overlapping Japan and Korean customers, including Honda, Hyundai, Kia, Nissan and Toyota and design-wins w/20 tier-1s and 400 car models, creating “substantial” cross-sell opportunities within indie’s existing portfolio.
Stock climbed as much as 13% to a high of daily high of $9.28. INDI is set to added about +20% since the deal was announced on February 9, if current session gains hold.
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indie stock surges +13% after B Riley praises $180M GEO purchase, ups rating to buy