B. Riley analyst Craig Ellis has revised the price target for Indie Semiconductor (INDI, Financial), reducing it from $9 to $7 while maintaining a Buy rating. This adjustment comes as the firm reassesses its forecasts for the latter half of 2025, particularly in light of potential difficulties in the broader macroeconomic environment.
The decision to lower the target stems from concerns about declining sales in key sectors, including personal computers, smartphones, and automobiles. These anticipated headwinds in the auto and industrial markets have prompted a cautious outlook for Indie Semiconductor's performance in the upcoming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Indie Semiconductor Inc (INDI, Financial) is $6.76 with a high estimate of $9.00 and a low estimate of $4.50. The average target implies an upside of 252.71% from the current price of $1.92. More detailed estimate data can be found on the Indie Semiconductor Inc (INDI) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Indie Semiconductor Inc's (INDI, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Indie Semiconductor Inc (INDI, Financial) in one year is $10.37, suggesting a upside of 441.15% from the current price of $1.9163. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Indie Semiconductor Inc (INDI) Summary page.
INDI Key Business Developments
Release Date: February 20, 2025
- Revenue: $58 million for Q4 2024, marking a 7.5% sequential growth.
- Gross Margin: 50.4% non-GAAP gross margin, consistent with the outlook.
- Non-GAAP Gross Profit: $29.2 million.
- Operating Expenses: Total of $43.4 million, with R&D at $31.5 million and SG&A at $11.9 million.
- Non-GAAP Operating Loss: $14.2 million, a 16% sequential improvement.
- Net Loss: $15.4 million, with a loss per share of $0.07 on 205.7 million shares.
- Cash Position: Total cash of $284.5 million, up from $107.2 million in the prior quarter.
- Convertible Notes Issuance: $218.5 million of 2029 convertible notes, yielding net proceeds of approximately $188 million.
- Q1 2025 Revenue Outlook: Expected range of $52.5 million to $57.5 million, with a midpoint of $55 million.
- Q1 2025 Gross Margin Outlook: Expected to be in the 49% to 50% range.
- Q1 2025 Operating Expenses Outlook: Expected to be $42 million, with R&D at $31.5 million and SG&A at $10.5 million.
- Q1 2025 Net Loss Per Share Outlook: Expected $0.08 net loss per share, assuming 211 million shares outstanding.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Indie Semiconductor Inc (INDI, Financial) achieved total revenue of $58 million in Q4 2024, marking its second quarter of sequential revenue growth.
- The company continues to gain market share, outperforming the industry despite a challenging automotive market environment.
- Indie Semiconductor Inc (INDI) has a strong product portfolio with multiple ramps in power delivery, in-car networking, and vision-based driver and occupant monitoring expected in 2025.
- The company announced a major win for its vehicle intrusion detection system with a major German OEM, set to commence full production ramp-up in the second half of the year.
- Indie Semiconductor Inc (INDI) maintains a strong balance sheet with total cash of $284.5 million, enhancing its ability to capitalize on potential acquisitions.
Negative Points
- Market uncertainty has accelerated due to impending tariffs, impacting the automotive industry and causing delays in production schedules.
- Indie Semiconductor Inc (INDI) expects Q1 2025 revenue to be down 5% sequentially, reflecting ongoing market challenges.
- The company faces heightened industry headwinds due to inventory levels, tariffs, and broader macroeconomic uncertainties.
- Despite strong execution, Indie Semiconductor Inc (INDI) reported a non-GAAP operating loss of $14.2 million in Q4 2024.
- The macro environment remains choppy, with mixed feedback from peers and ongoing uncertainty affecting market dynamics.
