Aeva, Arbe stocks rise following Canaccord buy rating initiation

Published 01/04/2025, 20:04
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Investing.com -- Shares of Aeva Technologies (NYSE:AEVA) and Arbe Robotics (NASDAQ:ARBE) saw an uptick in today’s trading session, with Aeva Technologies up 1% and Arbe Robotics climbing 2%. The upward movement comes after Canaccord analyst George Gianarikas initiated coverage on both companies with a buy rating, setting a price target of $9.50 for AEVA and $1.75 for ARBE.

Gianarikas highlighted the growing adoption of autonomous driving technology across various vehicle segments and industrial applications as a key driver for both companies. He pointed to Aeva’s strong position within Frequency Modulated Continuous Wave (FMCW) LiDAR technology and Arbe’s prominence in the imaging radar ecosystem as factors that should drive design wins and validation for the respective companies.

In his analysis, Gianarikas expressed optimism about the future of the technologies developed by Aeva and Arbe. He anticipates that the accelerating proliferation of autonomous driving tech will benefit both firms, citing Aeva’s recent development program award from a large passenger vehicle OEM as an encouraging sign. Despite the likelihood that both companies may require capital in the medium term, the analyst expects that emerging design wins will open up funding opportunities.

Gianarikas provided further context for his positive outlook, stating, "We see these as the right, future-leaning technologies. Each company has had some initial customer traction; we would like to see more from both." He also added, "Overall, we recommend both stocks at their current levels, as they offer a favorable risk-reward profile, despite potential capital requirements."

Investors appear to be responding to the analyst’s confidence in Aeva and Arbe’s market positions and potential growth vectors. As the autonomous driving sector continues to evolve, both companies seem well-positioned to capitalize on industry tailwinds, provided they continue to secure customer adoption and navigate their capital needs effectively.

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