Analyst Quinn Bolton of Needham maintained a Buy rating on Valens, retaining the price target of $4.00.
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Quinn Bolton has given his Buy rating due to a combination of factors that highlight Valens’ potential despite some challenges. The company reported second-quarter revenue and non-GAAP gross margin that surpassed market expectations, indicating strong operational performance. However, the guidance for the third quarter was lower than anticipated, primarily due to uncertainties in demand caused by tariffs.
Despite these challenges, Valens has made significant strides in the industry, notably with its MIPI A-PHY solutions in embedded vision applications, which is an industry first. Additionally, there is strong momentum for the VS3000 chipsets, evidenced by the increase in VS3000-based products. The price target remains at $4, based on an enterprise value that is three times the estimated sales for calendar year 2027, reflecting confidence in the company’s long-term growth prospects.