Automotive semiconductors and software platforms provider indie Semiconductor, Inc. (INDI) recently announced that it has entered into a definitive agreement to acquire Symeo GmbH, the radar division of Analog Devices. The terms of the deal have not been disclosed so far.
Following the news, shares of the company appreciated 2.3% to close at $13.02 in the extended trading session on Monday.
The acquisition is in line with the company’s plan of developing its radar research and development capabilities to strengthen its position in the automotive radar space.
The CEO of indie Semiconductor, Donald McClymont, said, “Bringing Analog Devices’ Symeo radar division under the indie umbrella significantly expands our sensor modality capabilities and affirms our commitment to the radar market. With the addition of this world-class engineering organization, we are accelerating indie’s entry into the radar market and, as a result, we believe we are better positioned to capture billion-dollar strategic programs among global automotive customers.” (See indie Semiconductor stock chart on TipRanks)
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Recently, KeyBanc analyst John Vinh initiated coverage on the stock with a Buy rating. The analyst’s price target of $18 implies upside potential of 41.4%.
According to the analyst, the company is well-positioned to gain market share in the growing automotive industry with the adoption of electric vehicles, connectivity and related services gathering momentum. Further, long product cycles and growing content trends remain tailwinds for the company.
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average indie Semiconductor price target of $16.67 implies upside potential of 31% from current levels.
indie Semiconductor scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained about 25.7% over the past year.
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