Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 30 Aug, 24 | INDI | Speculative Buy | USD 4.15 | USD 4.52 | USD 4.86 | 3 days | 17.1% |
Data Powered by EOD Historical Data (“EODHD”).
indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. It provides solutions in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. The company was founded in 2007 and is headquartered in Aliso Viejo, California.
Improving Profitability: Gross Margin of 42.5% in Q1 FY24 vs 40.5% in Q1 FY23
Lower Credit Risk Exposure: Debt-Equity Ratio of 0.39x in Q1 FY24 vs 0.44x in Q1 FY23
Lower Liquidity: Current Ratio of 1.74x in Q1 FY24vs Industry Median of 3.45x
Higher Cash Cycle: 151.8 Days in Q1 FY24 vs 97.4 Days in Q1 FY24
Product Development and Innovation, Acquisition Integration Risks, Market Adoption of Technologies, Supply Chain Dependencies, Intellectual Property Risks, etc
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 4.15 | 3.61 | 4.52 | 4.86 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
On the daily chart, Indie Semiconductor’s stock is trading beneath the horizontal support level and is currently within a narrow trading range. The RSI is at 37.07, which may signal a potential reversal if the price rebounds from the support level. The stock remains below both the 21-day and 50-day simple moving averages, which could serve as near-term resistance. Key support levels are at USD 3.82 and USD 3.61, while resistance levels are at USD 4.52 and USD 4.86.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductor Equipment & Materials
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| INDI indie Semiconductor Inc |
-0.04 1.07% | 3.70 | - | 294.12 | 4.20 | 2.10 | 4.30 | -10.5295 |
| ASML ASML Holding NV ADR |
- -% | 843.00 | 49.01 | 44.05 | 13.98 | 26.27 | 13.85 | 38.25 |
| ASMLF ASML Holding NV |
- -% | 830.00 | 35.84 | 34.36 | 10.90 | 22.09 | 10.98 | 30.93 |
| AMAT Applied Materials Inc |
3.89 1.94% | 204.77 | 25.44 | 25.19 | 6.52 | 9.91 | 6.46 | 19.50 |
| LRCX Lam Research Corp |
1.96 2.42% | 82.97 | 35.59 | 26.25 | 8.76 | 15.26 | 8.72 | 27.97 |
Data Powered by EOD Historical Data (“EODHD”).
Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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