Jaime Perez, an analyst from R.F. Lafferty, maintained the Buy rating on Arbe Robotics (ARBE – Research Report). The associated price target is $3.00.
Jaime Perez has given his Buy rating due to a combination of factors surrounding Arbe Robotics Ltd.’s current financial position and future outlook. Although Arbe Robotics reported a lower than expected revenue and a non-GAAP loss per share for the fourth quarter, they managed to beat the consensus earnings estimate. The company has also shown improvement in its Adjusted EBITDA loss year-over-year. Despite a negative gross margin attributed to low production volume and high fixed costs, Arbe Robotics has a significant cash reserve of $44 million with no debt, providing a solid financial base as it prepares for pre-production ramp-up in 2025.
Perez’s optimism is further supported by the company’s backlog and new orders totaling over $3.6 million, which indicates potential future revenue. However, due to slower expected growth in the near term and macroeconomic concerns, such as a potential global recession and a high-interest rate environment that may affect the EV industry’s adoption rate, his price target has been conservatively adjusted. The reduced price target reflects both a lowered revenue estimate for 2025 and a decreased price-to-sales multiple to account for the proposed debt issuance, signaling a cautious yet still positive outlook on the company’s prospects.
In another report released today, TD Cowen also assigned a Buy rating to the stock with a $3.00 price target.
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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.
Read More on ARBE:
- Arbe Announces Q4 and Full Year 2023 Financial Results
- Arbe Robotics sees 2024 revenue in line with 2023, consensus $39.53M
- Arbe Robotics reports Q4 EPS (15c), consensus (13c)
- ARBE Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Arbe Celebrates Milestone Achievements as Sensrad Announces Major Customer Orders for Revolutionary Radar Technology
