Neonode: A lot going on under the hood
Research Update
2017-11-22
07:30
There has been radio silence in Neonode throughout most of the year since the company no longer announces its design wins. However, our impression is that there are a lot of unknown, positive stuff going on under the hood. Neonode e.g. mentioned that it shipped modules for products of 12 customers in Q3. The steering wheel offering with its high ASP of about USD 50 is especially interesting as the semi-autonomous cars will hit the streets around year 2020. On a positive note, Neonode seems to have more projects going on than we first thought. However, large module contracts have still not arrived and we have been way too optimistic about the lead times. Thus, we lower our base case valuation to USD 1.7 per share (2.5) but our bear case of USD 0.8 is unchanged.
VW
Viktor Westman
Disclosures and disclaimers