Arbe Robotics (NASDAQ:ARBE) provides imaging radar solutions targeting autonomous driving. This penny stock (learn more about penny stocks here) has underperformed over the past year, losing about 38% of its value. However, Street is bullish about ARBE. Moreover, analysts’ average price target suggests more than 100% upside potential from current levels.
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Arbe is poised to capitalize on the increased demand for imaging radars in the automotive industry. Meanwhile, during the Q3 conference call, the company emphasized that its operations and business activities remain unaffected by the prevailing situation in Israel. Notably, Arbe conducts its manufacturing and production in Germany, and it anticipates that there will be no disruptions in product availability.
What is the Price Target for Arbe Robotics?
Arbe Robotics stock has three unanimous Buy recommendations, translating into a Strong Buy consensus rating. Further, these analysts’ average price target of $5 implies 129.36% upside potential from the current level.
T.D. Cowen analyst Joshua Buchalter is not impressed with the limited updates on OEM (original equipment manufacturer) design wins. Further, the macro-headwinds impacting EV (electric vehicle) sales are a negative development. However, the analyst reiterated a Buy recommendation on ARBE stock on November 8. Buchalter is bullish about imaging radar technology and noted that Arbe is progressing towards volume production, which will help improve margins.
On the other hand, Arbe’s management highlighted that the company’s current cash balance is sufficient to fund its operations until the second half of 2025. Moreover, its existing funds and the preliminary orders from China will enable it to reach breakeven, which is positive.
Bottom Line
Analysts expect Arbe Robotics stock to benefit from higher demand for imaging radar technology and margin improvement. Further, their price target suggests significant upside potential from current levels.
While ARBE stock presents notable upside potential, investors can use TipRanks’ penny stock screener to discover more such compelling penny stocks.
