Indie Semi stake sale to focus company on ADAS opportunity, says Roth Capital

Roth Capital maintains a Buy rating and $4 price target on shares of Indie Semiconductor (INDI) after the company said in a filing that it has entered into a non-binding agreement to sell its stake in its China Wuxi subsidiary to a China-based electronics company for all-cash proceeds. The closing of the deal may take some time, but Roth believes Indie will emerge following the divestiture as a more focused global auto Advanced Driver-Assistance Systems provider with a diversified sensor offering and will have a “cleaner” geopolitical structure going forward, the analyst tells investors in a research note.