Israel's Foresight Autonomous falls as Benchmark cuts PT

Foresight Autonomous Holdings

21/06/2019 17:38

** U.S.-listed shares of Foresight Autonomous Holdings Ltd
 FRSX.O  fall 3.7% to $1.30, down after four straight sessions
of gains
    ** Benchmark & Co cuts PT on stock to $3.50; median PT $7.25
    ** "With the shares currently trading close to their cash
value, we believe the stock has essentially become a call option
on the autonomous driving industry," brokerage says
    ** Earlier this week, Benchmark met CFO Eli Yoresh who
emphasized company is concentrating on its new QuadSight ADAS
solution, which combines stereo vision and infrared sensors for
semi- and fully-autonomous vehicles
    ** Benchmark says given company's pull back from Israeli
aftermarket, brokerage pushing out revenue expectations until
2021, at which time it expects modest revenue to trickle in from
QuadSight Evaluation Kits
    ** Brokerage says with respect to cash burn, expects company
to use roughly $3 mln of cash per quarter during 2019 to fund
operations, with burn rate increasing to roughly $4 mln in 2020
as firm nears full scale production
    ** Stock closed up ~40% on Wednesday after company entered
exclusive marketing deal for its image processing software with
Israel-based Elbit Systems  ESLT.TA   ESLT.O   urn:newsml:reuters.com:*:nL4N23Q2OH
    ** Only two brokerages cover FRSX, both have a "buy" rating
    ** Including session losses, U.S.-listed shares down 21.6%
this year

 (Reporting by Arjun Panchadar in Bengaluru)
 ((RM: Arjun.Panchadar.thomsonreuters.com@reuters.net))