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Investing.com - Benchmark raised its price target on Indie Semiconductor Inc (NASDAQ:INDI) to $8.00 from $6.00 on Tuesday, while maintaining a Buy rating on the automotive chip designer. The stock, currently trading at $3.69, is fairly valued according to InvestingPro metrics. Analyst consensus remains strongly bullish with price targets ranging from $4.00 to $6.00.
The price target increase follows a virtual investor meeting with Indie’s CEO Donald McClymont and EVP Corporate Development & Investor Relations Mark Tyndall, which left Benchmark "increasingly encouraged" by the company’s revenue growth potential.
Benchmark highlighted Indie’s specialized focus in the automotive ADAS market, particularly in radar and machine vision applications, as key drivers for future growth. The firm also pointed to Indie’s differentiated technology, design win pipeline, and operational efficiency initiatives as factors supporting its positive outlook. The company maintains strong liquidity with a current ratio of 5.3, though InvestingPro analysis indicates challenges with profitability and gross margins.
Despite previous short-term program delays, Benchmark believes Indie is "on the verge of realizing the first real revenue" from its multi-year investment commitments, which should lead to "multiple years of growth" once the ramp begins.
The new $8 price target represents 26 times Benchmark’s fiscal year 2027 earnings estimate of $0.31 per share, with the firm noting that Indie currently trades at just 10.6 times its "likely conservative" FY27 estimates.
In other recent news, Indie Semiconductor Inc. reported its first-quarter 2025 earnings, revealing a net loss of $16.7 million, which was larger than expected, and revenue of $54.1 million, falling short of the anticipated $55.94 million. The company’s earnings per share came in at -$0.18, missing the forecasted -$0.08. Despite these setbacks, Indie Semiconductor announced a restructuring plan to reduce operating expenses by 24% by the fourth quarter of 2025. Additionally, the company plans to divest its 34.38% equity stake in its Chinese subsidiary, Wuxi indie Microelectronics Technology Co., to United Faith Auto Engineering, though the transaction is subject to a non-binding agreement. Analyst firms have also adjusted their outlooks, with KeyBanc Capital Markets lowering its price target from $7.00 to $6.00 while maintaining an Overweight rating, and Benchmark reiterating a Buy rating with a $6.00 price target. Both firms express varying levels of optimism about Indie Semiconductor’s long-term prospects, particularly with its radar and vision programs expected to contribute significantly to future revenue. These developments come amid broader industry challenges, including increased tariffs impacting the automotive sector.
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