Cody Acree, an analyst from Benchmark Co., reiterated the Buy rating on indie Semiconductor (INDI – Research Report). The associated price target remains the same with $6.00.
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Cody Acree has given his Buy rating due to a combination of factors surrounding indie Semiconductor’s strategic decisions and financial outlook. The company has entered into an agreement to sell its equity interest in its Chinese subsidiary, which is expected to positively impact cash flow and valuation. This transaction, although still in negotiation, could bring in a significant cash infusion, potentially amounting to a quarter of indie’s current market capitalization.
Additionally, the sale is anticipated to enhance the company’s gross margin as it shifts focus to its high-margin vision and radar technologies. The removal of the Chinese subsidiary also reduces the risk associated with operating in a volatile trade environment, further strengthening indie’s financial position. The expected liquidity from the sale could be used to bolster the balance sheet or fund future acquisitions, making the transaction a strategic move for indie’s growth. These factors collectively support Acree’s Buy rating and the reiterated price target of $6.
According to TipRanks, Acree is a 5-star analyst with an average return of 18.5% and a 59.76% success rate. Acree covers the Technology sector, focusing on stocks such as Tower, Silicon Laboratories, and indie Semiconductor.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $4.00 price target.