Indie Semiconductor Stock Forecast – analysts see 90% upside

Auto-tech solution company indie, recently finalised their reverse merger with SPAC company Thunder Bridge Acquisition II (NASDAQ:THBR). The $1.4 Billion transaction saw the combined company raise $495 Million in cash proceeds. With the combined company now trading on Wallstreet, investor interest is mounting after the stock tanked to a 52 week low of $8.13 post merger. Furthermore, the 12 month average price target currently represents an upside north of 90%. With many questions to answer, this article will breakdown the Indie Semiconductor Stock Forecast.

What is indie’s outlook according to Wallstreet

Firstly, INDI’s average price target amongst 2 Wallstreet analysts is $18.50 a share according to WSJ data. This is suggests an upside potential of 85% from the current trading price. Both targets suggest analysts are bullish on INDI stock post merger.  Here are the two price targets from institutional analysts:

Craig-Hallum 7/11/21 – Analyst Anthony Stoss initiates coverage on indie Semiconductor with a Buy rating.

Roth Capital 3/12/21 – analysts initiated coverage on INDI stock with a price target of $20 a share. In addition, Roth Capital have set a Buy rating on the stock .

Benchmark 3/09/21 – analysts at Benchmark have initiated coverage at $17 a share and have also listed a Buy rating on the stock.

From the price target data available the general consensus amongst analysts remains a Buy. However, the targets were released pre merger and we will likely see new coverage on indie stock over the next quarter. The valuations from institutional analysts may play in the bulls favour if future coverage maintains a Buy rating.

Indie Semiconductor revenue catalysts

Firstly, indie Semiconductors are looking to capitalise on four main secular growth drivers. These are advanced driver-assistance systems, connectivity, user experience and electrification of vehicle production. The company expects to generate $44 Million in revenue in 2021. In addition, indie semiconductors expects this to double in 2022 to $91 Million. These numbers were noted in indie’s investor presentation in December 2020.

Indie Semiconductor revenue to reach $501 Million by 2025

Looking long term, by 2025 the company expects to generate $501 million in annual revenue. This is expected to translate a $154 million EBITDA, with future partnerships within the companies pipeline being the catalyst of this projected growth. It is worth noting the 4 year outlook is only based the companies projected outlook and its current backlog. Therefore, we may see changes to revenue guidance in the future. However, at this stage we can see from the strong revenue numbers that the company has a strong backlog which is a positive sign for investors.

What are the risks with the INDI stock forecast

Firstly, over the past 6 months SPAC companies have struggled to maintain steady growth after the merger is completed. The volatile swings in trading across the board of post-merger (SPAC) companies has caused some concern for investors. Overall, we can expect indie stock to remain volatile over the next quarter as new coverage from analysts and updated revenue guidance may swing the balance of the stocks sentiment.

The Bottom Line – Indie Semiconductor stock forecast

Since the companies SPAC merger with Thunder Bridge Acquisition II (NASDAQ:THBR), the companies valuation from a smart money consensus has remained overwhelmingly bullish. With an average price target suggesting a 90% upside from the current trading price, we can expect investors to follow suite.

However, with the lack of optimism in the SPAC market we can also expect similar levels of volatility.

The information above is not financial advice and does not constitute as a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

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