Foresight Autonomous Holdings Ltd (TA:FRST) has recently taken its marketing and R&D efforts up a notch, achieving a cooperation agreement with a top-3 Chinese OEM, an MOU with a leading French auto-parts supplier and successful tests of Rail Vision’s systems at Trenitalia. This was reflected in strong growth in R&D and marketing-related costs in Q3. Anticipating a continuation of this trend, we have increased our EPS loss forecasts for this year and next by 11% and 13%. Nevertheless, we note that a continuation of the marketing successes in recent months should further boost the group’s value proposition. We currently derive a DCF value of NIS3.11 per share.
R&D costs higher with staff hires
Foresight’s Q3 results show a reduction in quarterly EBITDA loss to NIS3.5m after NIS3.7m in Q216, but a key driver was a reduction in ESOP payments. Normalised EBITDA losses rose from NIS1.9m in Q2 to NIS2.7m, with R&D spending rising 56% q-o-q, reflecting increased hiring aimed at achieving the targeted proof of concept milestones in 2017 and an increased marketing focus by management.
To read the entire report Please click on the pdf File Below