UPDATE: H.C. Wainwright Downgrades Microvision (MVIS) to Neutral
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(Updated - February 26, 2020 8:54 AM EST)
H.C. Wainwright analyst Kevin Dede downgraded Microvision (NASDAQ: MVIS) from Buy to Neutral and dropped its price target.
The analyst commented, "Formally launched back in December 2015, our historically favorable coverage has reflected staunch support of MicroVision's laser-based projection technology. We have been fans, as such, since introduced to MicroVision's auto-cum-fighter plane heads-up display back in 2004 by the company's previous and long-standing CEO, Alex Tokman. Yesterday, however, MicroVision presented news that included the unfortunate curtailing of an interactive display engine deal we imagine may have ultimately contributed as much as $20M in sales this year and perhaps 2-3x that much next year. Further, MicroVision revealed that its Asia-based contract manufacturer had restarted mid-February after a conoravirus (COVID-19) instigated week-long shutdown. While trying not to play into the hysteria, we imagine market psychology could remain decidedly negative over the short term—MicroVision has a direct connection. More importantly, however, are other fundamental issues plaguing MicroVision including the resignation of its new(er) CEO, Perry Mulligan, on account of personal health, and the naming of his replacement, Sumit Sharma, in whom we have less familiarity, and therefore, less faith. With Mulligan out of the day-to-day operating picture and a leading customer out, MicroVision needs sales focused leadership more than ever, and we question Sharma's, or perhaps anyone's, capacity to deliver against MicroVision's cash constrained timeline. Lastly, should MicroVision's stock remain under the Nasdaq $1 per share bid requirement through June 9, the recently extended compliance date, the stock could be de-listed."
Shares of Microvision closed at $0.58 yesterday.
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