Gapwaves announced a supply agreement and joint development with Valeo (previously undisclosed European tier-1). The agreement is worth ‘mid-range double-digit MEUR over approximately 10 years’, which Redeye interpret as EUR40m-60m range. The start of production (SOP) is in 2025 rather than previously estimated 2027. Thus, Valeo will be the first to market with Gapwaves MLW technology. The agreement is smaller than Redeye had anticipated; but, the quicker time-to-market offsets the lower value. Thus, Redeye’s fair value range remains unchanged. Redeye expects a double-digit upward move in the share.
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