Arbe Robotics (NASDAQ:ARBE) offers 4D imaging radar solutions targeting the automotive market. The weakness in electric vehicle (EV) demand amid high interest rates has weighed on automakers and affected ARBE stock. This stock is down about 36.31% over the past year. Despite the macro headwinds, analysts are bullish about this penny stock (learn more about penny stocks here) and see significant upside potential.
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Notably, Arbe completed its chipset pre-production phase and is in the final stages of ramping up production in 2024. The company has not yet generated notable revenue. However, it expects to win a significant number of customers in 2024. Further, its large addressable market, focus on maintaining a solid balance sheet, and reducing costs to fund its growth keep analysts bullish.
Analysts Weigh in on ARBE Stock
Roth MKM analyst Sujeeva De Silva raised Arbe’s price target to $4 from $2 on April 3 and maintained a Buy rating. The analyst believes the company’s advanced 4D imaging radars can capture a significant market share in the lucrative automotive radar market. Additionally, he sees opportunities for expansion into non-automotive sectors. De Silva is optimistic about Arbe’s ongoing engagements with numerous potential customers, providing a foundation for future growth.
Echoing similar sentiments, Jaime Perez of R.F. Lafferty reiterated a Buy rating on ARBE stock last month. Perez’s price target of $3 implies 50% upside potential from current levels.
What is the Price Target for Arbe Robotics?
Five analysts cover Arbe stock, and all recommend buying its shares. The average ARBE stock price target of $3.50 implies about 75% upside potential from current levels.
Bottom Line
Arbe Robotics is well-positioned to capitalize on the automation and electrification of vehicles with its latest 4D radar technology. This is reflected in the analysts’ Strong Buy consensus rating. Besides for ARBE, investors can use TipRanks’ penny stock screener to find more compelling penny stocks.
