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Stock Strategist

Veoneer's Positioned for Growth

We expect its revenue to grow far faster than vehicle demand.


We expect global automobile makers’ adoption of advanced driver-assist systems, highly automated driving, and automated driving technologies to support average annual revenue growth for Veoneer (VNE) of roughly 12% for the next 10 years. We think Veoneer has positioned itself as an integrator of technologies that are required as standard equipment by governments’ new-car assessment programs. Advanced driver-assist technologies enable automakers’ vehicles to receive coveted 4- and 5-star crash test ratings.

In 2016, the National Highway Traffic Safety Administration said that a total of 20 automakers had voluntarily agreed to equip all new passenger vehicles by September 2020 with low-speed automatic emergency braking, which includes forward collision warning, both of which are advanced driver-assist technologies. In a progress report at the end of 2017, NHTSA said that 4 of 20 automakers had made automatic emergency braking standard equipment on more than 50% of their 2017 model year vehicles, while another 5 said that 30% of their vehicles produced in 2017 were equipped with automatic emergency braking.

Richard Hilgert does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.