Aeva Technologies (AEVA) Stock Looks Fully Valued After Bendix Truck Safety Deal

Aeva Technologies (AEVA) stock is in focus after the company agreed to supply its 4D LiDAR sensors and perception software to Bendix for future active safety and collision mitigation systems in Class 8 trucks.

See our latest analysis for Aeva Technologies.

The Bendix agreement and recent CityOS deployment in Fargo come as Aeva Technologies trades at US$24.39, with a 30-day share price return of 28.37% and a 90-day share price return of 72.86%. The 1-year total shareholder return declined 11.66%, while the 3-year total shareholder return is a little over 3x.

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With Aeva Technologies now trading close to its analyst price target and showing a very large 3 year total return, investors have to ask: Is there still value on the table, or is the market already pricing in future growth?

Most Popular Narrative: 1.2% Overvalued

Compared with the latest close at $24.39, the most followed narrative’s fair value estimate of $24.11 is slightly lower, which helps explain why Aeva Technologies is seen as only marginally ahead of that fair value line.

Impending series production award with a top 10 global passenger OEM for Level 3 highway and city driving positions Aeva as an early standard in next generation driver assistance, creating multi-year, high volume revenue visibility and operating leverage on fixed R&D expenses, which should support margin expansion and earnings growth.

Read the complete narrative.

Want to understand why this narrative supports a fair value close to today’s price? The whole case leans on rapid revenue expansion, improving margins and a future earnings multiple that assumes Aeva Technologies can scale from low current revenue to a much larger profit pool.

Result: Fair Value of $24.11 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Aeva Technologies story can change quickly if the unsigned passenger OEM contract slips or if autonomous freight programs take longer and orders arrive more slowly than analysts assume.

Find out about the key risks to this Aeva Technologies narrative.

Next Steps

With both risks and rewards on the table for Aeva Technologies, consider acting now and reviewing the full picture yourself using the 2 key rewards and 5 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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