10 Top Performing European Stocks Heading into 2025

4) Neonode Inc. (NASDAQ:NEON)

% Increase on a YTD Basis: ~184%

Average Upside Potential: ~56%

Neonode Inc. (NASDAQ:NEON) is engaged in developing optical sensing solutions for contactless touch, touch, and gesture sensing in the US, Switzerland, France, and internationally. The company is headquartered in Stockholm, Sweden.

Neonode Inc. (NASDAQ:NEON) has licensed its Touch Sensor Module (TSM) technology to YesAR, which is a Chinese firm specializing in holographic display technology. Wall Street analysts are quite optimistic about this development in the company’s transition from product sales to a licensing business model. The licensing agreement is expected to allow YesAR to integrate Neonode Inc. (NASDAQ:NEON)’s TSM technology into the development and manufacturing of holographic infotainment solutions, aimed at automotive and elevator industries, among others.

Market experts believe that this deal has an upfront technology access fee, with subsequent royalties as a result of future sales. The developments exhibit a significant step for Neonode Inc. (NASDAQ:NEON) in the expanding market of holographic interfaces. The company remains positive towards the prospects of garnering new projects and business with its driver and in-cabin monitoring solutions. These solutions have been generating positive attention from OEMs and suppliers in the automotive industry.

Neonode Inc. (NASDAQ:NEON)’s flexible and scalable approach to driver and in-cabin monitoring offers manufacturers and their suppliers a cost-effective and efficient platform for getting compliance and automotive innovation. The company sees a growing market interest in licensing its cost-effective and proven touch interaction solutions. Neonode Inc. (NASDAQ:NEON)’s cash and accounts receivable came in at $18.6 million and working capital for continuing operations sat at $17.7 million as of September 30, 2024.

Its financial position and liquidity should help it execute its strategy to secure more licensing opportunities for innovative technologies. As per Wall Street analysts, the shares of Neonode Inc. (NASDAQ:NEON) have an average price target of $10.25.