Veoneer Stock Running Higher On Global Automaker's Nomination

The equity is eyeing its fifth consecutive win

Lillian Currens
Sep 10, 2019 at 9:54 AM
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Swiss-based auto technology name Veoneer Inc (NYSE:VNE) is up 6.8% at $17.69 this morning, after the firm and its joint venture unit, Zenuity, were nominated by an unnamed global automaker to build its Mono Vision System camera software for European vehicles. The stock is eyeing its fifth consecutive win, in response, as well as its highest close in nearly a month.

In fact, the stock has been on a straight run higher since it hit an all-time low of $13.46 on Sept. 3, now up nearly 31.4% off this level. Plus, VNE is looking to take out its 80-day moving average -- a trendline that capped yesterday's rally -- for the first time since April. 

Considering its recent nadir, it is unsurprising that nine of the 10 covering VNE consider it a "hold" or worse, with only one of these analysts calling it a "strong buy." Should Veoneer continue its more recent trajectory, however, a round of bull notes could help propel the stock higher. On the other hand, the consensus 12-month price target of $22.20 is at a roughly 34% premium to current levels. 

An unwinding of short interest could add tailwinds on the charts, too. Short interest rose 8% in the last two reporting periods. The 8.82 million shares sold short represent a healthy 7.9% of the stocks available float, or over 12 days at VNE's average pace of trading. 

 


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