Why Wedbush Predicts Nearly 100% Upside For This Auto Data Analytics Firm

Shares of Wejo Group Limited WEJO, an auto data analytics company, have huge upside potential, according to an analyst at Wedbush.

The Wejo Analyst: Daniel Ives initiated coverage of Wejo shares with an Outperform rating and $10 price target, suggesting an over 90% upside potential.

The Wejo Thesis: Wejo is an industry leader in the connected vehicle insight market with strong backing by key strategic investors, including General Motors Corporation GM, Microsoft Corporation MSFT, and Palantir Technologies Inc. PLTR, analyst Ives said in a note.

Wejo has a unique data supply received directly from about 12 million connected vehicles and over 17 billion data points a day, he added.

The U.K.-based company is in a distinctive position to be able to unlock a massive total addressable market and will likely emerge as a major player in the connected vehicle data market in both the consumer and commercial segments, the analyst said.

Related Link: Microsoft Funds Connected Vehicle Data Startup Wejo, Joining Palantir, GM In List Of Backers

Wejo, according to the analyst, has a big opportunity to continue its first-mover advantage, with expansive application use cases, to capitalize on the projected total addressable market of over $500 billion in 2030.

Connected vehicles are expected to grow from 225 million currently to 600 million by 2030, as the penetration of EVs increases, the analyst said.

Apart from ingesting data for consumers on the automotive lifecycle, the company's cloud technology enables vehicle-to-vehicle communication, critical for autonomous and electric vehicles in the near future, the analyst added.

By 2025, Wejo expects to have 124 million vehicles on its platform, with $764 million in revenue and over 40 agreements signed with global OEMs, the analyst noted.

Wejo Price Action: At last check, Wejo shares were down 0.19% to $5.25.

Related Link: EXCLUSIVE: How GM, Microsoft, Palantir-Backed Wejo Is Scaling Its Connected Vehicles, Marketplaces