Friday - KeyBanc has adjusted its outlook on indie Semiconductor Inc (NASDAQ:INDI), reducing the price target to $9.00 from the previous $10.00, while maintaining an Overweight rating on the stock. This change comes after indie Semiconductor disclosed first-quarter results and second-quarter guidance that fell short of expectations, a reflection of the broader downturn in automobile demand.
The company anticipates that the challenges with inventory destocking will continue throughout the year. However, management remains optimistic about achieving a 20% growth in 2024. This growth projection is notably more robust than the Global Seasonally Adjusted Annual Rate (SAAR) of automobiles, which is projected to be flat or potentially decline by up to 1%.
indie Semiconductor is expected to experience a significant rebound with approximately 30% quarter-over-quarter growth in the third and fourth quarters of 2024. This anticipated surge is believed to be fueled by new contracts in sectors such as lighting, wireless charging, and power distribution. Furthermore, the company is poised for additional growth with the commencement of larger program wins in vision technology, which are slated to ramp up in the second half of 2024, and with radar technology projects beginning in 2025.
In light of the recent earnings report and future projections, KeyBanc has revised its estimates and price target for indie Semiconductor to align with the current market conditions and the company's growth trajectory. Despite the reduced price target, KeyBanc's Overweight rating indicates a positive outlook on the stock's potential performance.
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