MVIS Stock Forecast: LiDAR Sensors Mark The Future

This MVIS stock forecast article was written by Maria Grishaev, Analyst at I Know First.

Executive Summary

  • 2020 saw a 556.1% rise in MVIS stock price despite a net loss in the annual reports.
  • Quantitative analysis results indicate bullish signals after stock price topped out the moving average line.
  • MicroVision deserves a one-year target price range of $30-$40.

Overview

MicroVision, Inc. (NASDAQ: MVIS) is an American company that develops laser scanning technology for projection, 3D sensing, and image capture. This technology allows them to create high-resolution miniature projection displays and LiDAR sensors.

In 2020 the stock price rose in total by 556.1% in comparison to a 2.57% rise of the S&P500. The stock continues it sour in 2021 as it already rose by 267.1% against a 4.67% rise of the S&P 500.

mvis stock forecast price movements
Source: Yahoo Finance

This week, the company announced it entered into a $50 million At-the-Market (ATM) equity offering agreement with Craig-Hallum Capital Group LLC. Under the agreement, MicroVision may offer and sell shares of its common stock having an aggregate value of up to $50 million through Craig-Hallum. MicroVision intends to use the net proceeds from the ATM, for general corporate purposes, which may include working capital and capital expenditures as it pursues a potential strategic transaction.

Additionally, the company announced that it has received the necessary components and equipment to meet its April milestone of completing A-Samples of its Long-Range Lidar Sensor. The Company also announced that it has started outdoor testing of key performance features on its development platform. After spending two years developing the sensor, MicroVision believes that the finished product will achieve the standards that automakers will set for their autonomous driving systems. The stock jumped by 31% following this announcement.

Indicators Show a BUY Signal

mvis quantitative analysis
Source: Yahoo Finance

As we can see in the chart, the most recent time that the stock price crossed above the moving average for 200 days (the purple line) was mid-August and it signaled a potential change in trend. That was indeed the case as the stock rose from there. We can also see that the moving average for 50 days (the red line) crosses above the moving average for 200 days and it also indicates that the trend is shifting up. This is the known “golden cross” that gives us a buy signal.

Another indicator for a potential opportunity is the Bollinger Bands® squeeze. A squeeze signals a period of low volatility and is considered by traders to be a potential sign of future increased volatility and possible trading opportunities. This can be seen happening here from October to December. The peak outside the bands in December corresponds with the Reddit trading frenzy.

mvis stock recommendations
Source: Yahoo Finance

The Yahoo Finance coverage for the company is performed by 3 analysts who took the Buy position on the stock.

High Potential of Growth Ahead

According to research by Allied Market Research, the global LiDAR market was valued at $700.2 million in 2019 and is projected to reach $2.90 billion by 2027, growing at a CAGR of 20.1% from 2020 to 2027. Lidar technology is utilized by the vast majority of companies that are developing autonomous driving technology, which is also often associated with electric vehicles. According to another research by Research and Markets, the global autonomous/driverless car market was valued at USD 24.1 billion in 2019 and is expected to project a CAGR of 18.06%, during 2020-2025. The autonomous car market is estimated to reach USD 60 billion by 2030. Thus, the potential growth in revenue once the development of the LiDAR sensors is completed is a big one.

Conclusion

I take the buy-side on MVIS stock. It is reasonable to expect further growth of MVIS stock price as explained above. As the company nears to completion of the next stage of development of its long-range lidar sensors, along with the company’s potential strategic transaction, it’s reasonable to expect high growth in sales and revenue. In accordance with the growth in revenue, I expect the stock price to increase as well. My estimate of the stock target price ranges of $30-$40 which makes it a 50-100% difference from the current price.

I Know First MVIS stock forecast

Please note that the stock-picking AI of I Know First has a very high signal on the one-year market trend forecasts. In addition, the darker green is a strong bullish signal for all time horizons.

Past Success with MVIS Stock Forecast

I Know First noticed the upward trend of MVIS and has been bullish with the price since mid-January. On January 17, 2021, the I Know First algorithm recommended MVIS as part of the Aggressive Stocks Forecast Package. The AI-driven MVIS stock forecast was successful on a one-month horizon resulting in a 216.87% gain since the forecast date.

mvis stock forecast
mvis historical price

Moreover, on February 3, 2021, the I Know First algorithm also recommended MVIS as part of the Aggressive Stocks Forecast package. The AI-driven MVIS stock forecast was successful on a 14 days’ time horizon resulting in a 174.69% gain since the forecast date.

mvis stock forecast
mvis historical price
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Please note-for trading decisions use the most recent forecast.