Redeye notes that Smart Eye’s main competitor, Seeing Machines, today announced its largest design win to date. Redeye believes the customer is Volkswagen. While this is bad news for Smart Eye, Redeye doesn’t consider it a game-changer for the investment case. As Volkswagen was not included in Redeye’s previous estimates, Redeye reiterates its valuation.
Redeye Base Case based on 35% market share – we reiterate our valuation
While today’s news reduces the potential in the investment case, we had far from anticipated Smart Eye to win all RFQs. Our base case assumes that Smart Eye achieves a 35% market share. As such, we had not included Volkswagen in our estimates.
Due to this logic, Redeye maintains its valuation range.