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Wejo: A “Pure Play” Next Generation Auto Story
Stock Analysis & Ideas

Wejo: A “Pure Play” Next Generation Auto Story

The electric vehicle (EV) segment is on the cusp of forever changing the auto industry. Recent times have seen many companies – old and new – joining the fray, providing increasing competition for current EV leader Tesla.

But a growing EV- and autonomous – market presents opportunities not just for auto manufacturers but other companies offering a myriad of supportive services. On such company Wedbush’s Daniel Ives says is “strategically positioned” to benefit from this new paradigm is Wejo (WEJO).

“Wejo is a pioneer around ingesting data for consumers on the automotive lifecycle which is becoming increasingly more important in this autonomous and EV transformation for the next decade,” the 5-star analyst said. “The company’s cloud technology also enables vehicle-to-vehicle communication, critical for autonomous and EVs in the near future that use its robust technology platform to standardize data and transform it into useful analytics.”

It also helps that the connected vehicle insight market leader has the backing of some deep-pocketed investors in Microsoft, GM and Palantir. And along with that, the company has first-mover advantage in an industry projected to have a TAM of over $50 billion in 2030, with the number of connected vehicles globally rising from 225 million today to 600 million.

By 2025, the company expects vehicles on its platform will increase from the current 11.9 million to 124 million with 40 global OEMs on board – up from 22 today – all generating revenue of $764 million. By then Wejo should have 8 different products catering to different industry needs, amongst them remote diagnostic services, car insurance, car-sharing/rentals, fleet management, roadside help, and integrated payments.

On the path to reaching that goal, Ives believes 2022 will be a “major inflection point year for more key partnerships and global distribution expansions,” as the company establishes itself as the “dominant player” in the field via a potent mix of “robust proprietary software and strong strategic partners.”

With all the above as backdrop, Ives initiated coverage of WEJO stock with an Outperform (i.e., Buy) rating and a $10 price target, suggesting shares have room of 39% growth over the next 12 months. (To watch Ives’ track record, click here)

Only one other analyst has so far thrown the hat in with a review of this new stock (Wejo entered the public markets via a SPAC merger in November) but their bullish take provides Wejo with a Moderate Buy consensus rating. The $11 average price target implies shares will rise by 52% over the one-year timeframe. (See Wejo stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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