The rising demand for autonomous vehicles and extensive urbanization and industrialization have boosted the demand for innovative LiDAR technologies. LiDAR sensors are crucial for autonomous driving, advanced driver-assistance systems, and acquiring 3D data for urban planning.
According to Absolute Reports, the global market for automotive and industrial LiDAR is expected to reach $9.07 billion by 2028, growing at a 24.4% CAGR over the period.
Given this backdrop, Wall Street analysts expect LiDAR stocks Luminar Technologies, Inc. (LAZR), Ouster, Inc. (OUST), Innoviz Technologies Ltd. (INVZ), and AEye, Inc. (LIDR) to rally in the coming months.
Luminar Technologies, Inc. (LAZR)
LAZR is an Orlando, Fla.-based automotive LiDAR hardware and software company that develops advanced sensor technologies for the autonomous vehicle industry. The company operates through two segments: Autonomy Sales; and Component Sales. LAZR has research and manufacturing facilities in Orlando, Florida and Alto, California.
Last month, LAZR partnered with Mercedes-Benz to enhance safety and autonomous driving technologies in Mercedes passenger cars. LAZR’s Iris lidar technology is to be integrated into series production. With this partnership, LAZR is expected to leverage its foundational technology and boost its revenue streams.
Also in January, LAZR announced launch plans with Volvo Cars for the all-electric next-generation SUV. LAZR’s Iris lidar technology is to be integrated into the roofline, marking the debut of a fully electric SUV with highway autonomy capabilities in North America. With this partnership with Volvo, LAZR is expected to boost its profits and revenues.
LAZR’s revenue increased 88.9% year-over-year to $7.98 million in its fiscal third quarter, ended Sept.30, 2021. LAZR’s total other income grew 286.3% year-over-year to $17.54 million. And the company’s total assets increased 19.1% over the nine months ended Sept. 30, 2021, to $607.81 million.
The $11.83 million consensus revenue estimate for the fourth quarter, ended Dec. 31, 2021, represents 386.6% year-over-year growth. And analysts expect the company’s EPS to rise 8.3% year-over-year in the about-to-be reported quarter. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past five days, the stock has increased 10.1% in price to close yesterday’s trading session at $14.34.
Of the nine Wall Street analysts that rated LAZR, seven rated it Buy, while two rated it Hold. The 12-month median price target of $25.75 indicates a 79.6% potential upside. The price targets range from a low of $14.00 to a high of $38.00.
Ouster, Inc. (OUST)
San Francisco-based OUST designs and manufactures high-resolution digital lidar sensors used in industrial automation, robotics, smart infrastructure, and automotive industries. The company’s products include OS0, an ultra-wide view digital lidar; OS1, a mid-range digital lidar; OS2, a long-range digital lidar; and ES2 digital lidar.
Last month, OUST signed a strategic customer agreement with Serve Robotics, an autonomous sidewalk delivery company. The agreement includes a commitment to supply OS digital sensors through 2023 and additional sensors to Serve Robotics through 2025 to enable the safe and efficient navigation of sidewalk delivery robots. The company is expected to leverage its lidar technology through these agreements to increase its revenues.
This January, OUST signed a strategic customer agreement with Vecna Robotics, an intelligent material handling automation company. OUST must deliver approximately 3000 digital lidar sensors to Vecna through 2025. The company is expected to serve the increasing market demand for warehouse and logistics automation and boost its revenues.
In the third quarter, ended September 30, OUST’s total revenue increased 30.4% year-over-year to $7.76 million. Its gross margin increased 76.5% year-over-year to $1.88 million. And the company’s cash and cash equivalents increased 1850.1% over nine months ended Sept. 30, 2021, to come in at $221.58 million. OUST’s total assets grew 462.9% over the nine months to $261.27 million.
The $11.19 million consensus revenue estimate for the fourth quarter, ended December 31, 2021 represents 75.5% year-over-year growth. The Street expects OUST’s EPS to improve 89.9% year-over-year in the about-to-be-reported quarter.
Over the past five days, OUST’s stock has gained 17.6% in price. Both Wall Street analysts that rated OUST rated it Buy. The 12-month median price target of $13.50 indicates a 280.3% potential upside from yesterday’s closing price of $3.55. The price targets range from a low of $8.00 to a high of $19.00.
Innoviz Technologies Ltd. (INVZ)
INVZ is an Israel-based company that designs and manufactures solid-state LiDAR sensors and perception software that provide vision in the automotive, robotics, mapping, drones, and other industries that enable the mass production of autonomous vehicles.
Last month, INVZ collaborated with Twinner, a German-based vehicle scanner provider within the automotive industry. "At Innoviz, we're all about raising the bar on transparency. The team at Twinner is driven by a similar philosophy and we're excited to collaborate with them to integrate our high-resolution, solid-state LiDAR technology with their Digital Twinn solution,” said Omer Keilaf, CEO and co-founder of INVZ.
Also last month, INVZ introduced Innoviz360, a patent-pending HD LiDAR architecture that allows multiple scanning software configurations at a significantly lower cost. This innovative product line is expected to generate revenues beginning in 2023, and the new total addressable market (TAM) for all types of applications might reach $75 billion by 2030.
INVZ’s revenue increased 13.4% year-over-year to $2.08 million in the third quarter of 2021, ended September 30. INVZ’s net financial income grew 596.8% year-over-year to $3.74 million. The company’s cash and cash equivalents increased 179.4% over the nine-month period ended Sept. 30, 2021, to $139.57 million. INVZ’s total assets grew 382.5% over the nine months to $350.14 million.
Analysts expect INVZ’s revenue for the first quarter, ending March 31, 2022, to come in at $2 million, representing a 174.7% rise year-over-year.
The stock has increased 11.2% in price over the past five days to close yesterday’s trading session at $4.16.
Each of the three Wall Street analysts that rated INVZ rated it Buy. The 12-month median price target of $10.00 indicates a 140.4% potential upside. The price targets range from a low of $9.00 to a high of $12.00.
AEye, Inc. (LIDR)
LIDR provides lidar technology for autonomous vehicles, advanced driver-assistance systems (ADAS), and robotic vision applications. The Dublin, Calif.-based company offers sensors such as 4Sight A and 4Sight M, and offers an iDAR platform, a robotic solution for artificial perception. In addition, it offers AE100 robotic perception system and AE200, an iDAR based product for autonomous vehicles.
Last December, LIDR entered into a common stock purchase agreement with Tumim Stone Capital LLC. Under the agreement, LIDR has the right, but not the obligation, to sell to Tumim Stone up to $125 million of LiDR’s common stock over the 36-month term of the agreement. This is expected to provide LIDR with additional capital to support its growth.
LIDR’s cash and cash equivalents increased 243.5% over nine months ended Sept. 30, 2021, to $52.47 million. The company’s total assets grew 677.4% over nine months to $201.23 million.
The $12.17 million consensus revenue estimate for its fiscal year 2022 represents 576.1% year-over-year growth.
The stock has slumped 43% in price year-to-date. However, LIDR’s 12-month median price target of $15.00 indicates a 443.48% potential upside from yesterday’s closing price of $2.76.
LAZR shares were trading at $14.20 per share on Thursday morning, down $0.14 (-0.98%). Year-to-date, LAZR has declined -16.03%, versus a -5.00% rise in the benchmark S&P 500 index during the same period.
About the Author: Mangeet Kaur Bouns
Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions.
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