Analyst Quinn Bolton of Needham maintained a Buy rating on Valens, with a price target of $3.00.
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Quinn Bolton’s rating is based on several key factors that suggest a positive outlook for Valens. The company reported third-quarter revenue and non-GAAP gross margins that surpassed expectations, indicating strong financial performance. Although the guidance for the fourth quarter was mixed, with revenue projections above expectations and gross margins slightly below, Bolton believes that the gross margin guidance is conservative. He suggests that the anticipated flat automotive gross margin does not align with a significant decline in CIB margins, for which there is no apparent catalyst.
Moreover, the stronger revenue guidance for the fourth quarter is expected to be driven by the strength in the CIB segment as tariff-related challenges diminish. Additionally, Valens is set to launch the first endoscopes powered by the V A7000 chipset through three OEMs, which could further enhance its market position. Despite lowering the price target to $3, based on an enterprise value to sales ratio for 2027, these developments collectively support a Buy rating for Valens.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $3.00 price target.