Discloses Insider Buy

In a form 4 filing, Peraso (PRSO) disclosed that Director Ian McWalter purchased 50,000 shares at an average price of $0.6383 per share on June 8, 2023 and bought another 50,000 shares at an average price of $0.63 per share the next day. We see the insider buying as a nice vote of confidence in Peraso’s viability but believe the more meaningful signal in this regard will be confirmation that the company has secured one or more significant non-recurring engineering and licensing agreements. Recall that these awards have the potential to bolster the company’s balance sheet with non-dilutive capital, and combined with the recently completed capital raise, would provide a longer runway to scale Peraso’s mmWave business. Our price target remains $1.25, representing an unchanged FY ’23 EV/Sales multiple of 2x.  

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Disclosure(s):

K. Liu & Company LLC (“the firm”) receives or intends to seek compensation from the companies covered in its research reports. The firm has received compensation from Peraso Inc. (PRSO) in the past 12 months for “Sponsored Research.”

Sponsored Research produced by the firm is paid for by the subject company in the form of an initial retainer and a recurring monthly fee. The analysis and recommendations in our Sponsored Research reports are derived from the same process and methodologies utilized in all of our research reports whether sponsored or not. The subject company does not review any aspect of our Sponsored Research reports prior to publication.