Ann: S&P DJI Announces March 2021 Quarterly Rebalance, page-80

INDEPENDENT EQUITY RESEARCH
Weebit Nano Ltd. is a leader in the development of next-generation memory
technology. Operating since 2015, Weebit addresses the growing need for data
storage and embedded non-volatile memory (NVM) technology with its new
resistive random-access-memory (ReRAM) technology.
Market - The data storage industry is expanding exponentially, with the demand
for high-speed and energy-efficient memory constantly increasing. While flash
storage is now most prevalent technology, its limitations, arising from factors
such as scalability, endurance, and retention are opening an opportunity for
emerging NVM technologies. The NVM market is expected to reach around
US$88 billion by 2025, with a steady growth rate of 10.6%.
Strategy and business model – Considering Weebit's positioning and
technological solutions, we believe it will play a vital role in the growing NVM
market. Because Weebit, like many technology firms, is still in the scale-up
phase, with proven technology and initiating sales efforts, its current challenge
involves marketing and sales more than technology. The company is adopting
two licensing strategies that various electronic device OEMs can leverage to
incorporate Weebit's SiOx ReRAM in their product designs.
Valuation - We conducted Weebit's valuation using bottom-up analysis, market
benchmarks from recent transactions, and relevant market multiples via the DCF
method. We value Weebit’s equity at US$363.8M; the stock price target is in the
range of US$2.8 to US$3.2, with a mean of US$3.0