Neonode initiated with a Buy at Ladenburg amid shift in model

As previously reported, Ladenburg initiated coverage of Neonode (NEON) with a Buy rating and $16.50 price target Neonode, which has a long history of pioneering technology advancements in the field of human machine interfaces, or HMI, with its two main offerings, zForce and Multisense, is “undergoing a shift in its business model,” the analyst tells investors. Neonode made the strategic shift in December 2023 to shed manufacturing of one of its technology offerings and become a company completely focused on licensing its “deep” intellectual property portfolio, notes the analyst, who believes this change will “take some time to build scale,” but should lead to “strong profit margins and little additional costs as the business builds.”