Aeva - Coverage initiation: Winning the ubiquitous lidar opportunity? Buy, $18 target price.

We are initiating coverage on Aeva, a $2bn market cap, early-stage company, which recently merged with a SPAC, and develops a highly differentiated perception technology, which we expect to eventually dominate the “ubiquitous lidar” market. We expect lidars to proliferate in autonomous vehicles, of course, but also in a number of other devices, from smartphones and headsets to medical sensors… as soon as they deliver the right performance, at the right price.
Lidar is a high-visibility controversy today, and we count over ten early-stage companies taking position in the field, representing over $20bn in cumulated Enterprise Value. This will be a competitive space and the jury will remain out for a few more years. We nevertheless picked Aeva for a reason: the combination of their technology, based on coherent light, and their strategy, to develop a platform spanning from autos to consumer electronics, is unique, and they have already accumulated a strong competitive advantage, gliding down on an experience curve they initiated three years ago.
If you want to dig into this fascinating investment case, understand why we think, against Elon Musk’s claims, that lidar will eventually be adopted by all, and why we think Aeva’s technology is best positioned to win this opportunity, follow the link below.