Arbe Robotics (ARBE – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Joshua Buchalter from TD Cowen remains neutral on the stock and has a $4.00 price target.
Joshua Buchalter’s Buy rating for Arbe Robotics is based on a range of factors, primarily focusing on the company’s ongoing development and potential for growth. Despite lower than expected revenue in the recent quarter, Arbe Robotics has been making progress by shipping B samples of its chiplets to customers and inching towards volume production. The company is also in the final stages of selection with leading Original Equipment Manufacturers (OEMs) in Europe, the US, and Asia, which Buchalter sees as crucial to Arbe’s success.
Buchalter also highlights the increased gross margin despite the lower revenue base, indicating a growing profitability. The expectation is that gross margins will continue to increase as the company transitions into volume production. Furthermore, despite the ongoing conflict in Israel, Arbe’s operations remain largely unaffected, ensuring the company’s stability. The management’s anticipation of a lower range of $5-7M revenue for the full year of 2023 also played a role in the Buy rating. In conclusion, Buchalter’s rating is based on Arbe’s steady progress, promising engagements with key OEMs, and the company’s resilience amidst external challenges.
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Arbe Robotics (ARBE) Company Description:
Based in Tel Aviv, Israel, Arbe is a leading radar technology company offering perception radar chipset solutions for autonomous driving. Arbe’s 4D imaging radar is designed to enable accurate and reliable sensing, supporting the complete autonomy of vehicles.
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