MicroVision's Strategic Moves And New CTO Drive Analyst Confidence, But Challenges Remain In Q4

D. Boral Capital analyst Jesse Sobelson reiterated a Buy rating on the shares of MicroVision Inc MVIS with a price forecast of $3.00.

The company is slated to release its fourth-quarter earnings on Wednesday, March 26, 2025.

MVIS announced the appointment of Glen DeVos as the new CTO yesterday. DeVos, with extensive experience in the automotive and industrial sectors, including roles at Aptiv and Delphi, will oversee global engineering and product design.

His hiring is seen as a positive move for MVIS, asserted the analyst.

MVIS completed a convertible transaction in October, raising $38 million in net proceeds, boosting its PF cash balance to an estimated $81 million.

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This increased liquidity brings the total to $234 million. Meanwhile, due to GAAP accounting, a non-cash expense of $10 million – $15 million is expected in fourth-quarter, reducing the GAAP EPS forecast from a $0.10 loss to a $0.17 loss per share.

Investors should focus on key performance indicators like backlog growth and operating income, noted the analyst.

In February 2025, MVIS reported that a $45 million convertible debt holder converted $12.25 million into 11.7 million shares, adding to previous transactions.

The company also sold 5.6 million additional shares for $8 million. This results in 22.3 million new shares, bringing the total shares outstanding to 226.8 million.

The pro-forma cash balance is approximately $89 million, with debt standing at $32.75 million, excluding any cash burn in fourth-quarter of FY24 and first-quarter of FY25.

Despite a decline in the fourth EPS estimate, the analyst continues to model MVIS with a focus on growth in its industrial and automotive segments, expecting eventual profitability.

The price forecast is based on an average of a 10-year DCF and relative valuation model, which reflects 4x the FY26 sales estimate.

Price Action: MVIS shares traded lower by 6.48% at $1.515 at last check Tuesday.

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