2024-03-07 10:37:53 ET
Summary
- While Valens Semiconductor Ltd. management has been guiding for an automotive win for most of 2023, that has been pushed back to 2024.
- Even for 2024, management is no longer guiding for an automotive design win and does not seem confident about it, citing the weak automotive market and lengthening decision process.
- The company has a lack of visibility into its own business for even the first half, highlighting a very uncertain environment for Valens Semiconductor.
- Apart from the automotive market experiencing a cyclical downturn, the audio-video market is also challenged due to weak inventory consumption.
- Valens Semiconductor revenues are expected to decline and only recover to 2023 levels in 2026, with margins deteriorating in the near-term.
After watching the company closely for some time now, I have decided to downgrade Valens Semiconductor Ltd. ( VLN ) to a Sell rating, which I will elaborate in greater detail below....
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For further details see:
Valens Semiconductor: 4 Reasons To Sell