MicroVision's Strategic Moves And New CTO Drive Analyst Confidence, But Challenges Remain In Q4

Company Overview - MicroVision Inc (MVIS) has a Buy rating with a price forecast of $3.00 by analyst Jesse Sobelson from D. Boral Capital [1] - The company is set to release its fourth-quarter earnings on March 26, 2025 [1] Management Changes - Glen DeVos has been appointed as the new Chief Technology Officer (CTO), bringing extensive experience from the automotive and industrial sectors [1][2] Financial Performance - MVIS raised $38 million in net proceeds from a convertible transaction in October, increasing its pro forma cash balance to approximately $81 million [2] - The total liquidity now stands at $234 million, but a non-cash expense of $10 million to $15 million is expected in the fourth quarter, adjusting the GAAP EPS forecast from a loss of $0.10 to a loss of $0.17 per share [3] Shareholder Actions - In February 2025, a $45 million convertible debt holder converted $12.25 million into 11.7 million shares, and the company sold an additional 5.6 million shares for $8 million, resulting in a total of 22.3 million new shares [4] - The total shares outstanding have increased to 226.8 million [4] Future Outlook - Despite a decline in the fourth EPS estimate, the focus remains on growth in the industrial and automotive segments, with expectations of eventual profitability [5] - The price forecast is based on a 10-year DCF and relative valuation model, reflecting 4x the FY26 sales estimate [5]