With the aim of providing a high-resolution 3D view of your environment, LiDAR (Light Detection and Ranging) sensors are set to become a mainstay in autonomous vehicles.
While not everyone has been a supporter of the technology — Elon Musk, for one, has said in the past that he’s not a fan — JPMorgan analyst Samik Chatterjee says, “The debate around the value-add of a LiDAR in a sensing suite ensued It’s been a long time.”
The decision to drop the use of lidar revolves around cost rather than performance, though the jury is still out on the “winning technology approach.”
That said, the answer is pretty clear as far as Chatterjee is concerned.
The analyst said, “We believe the real difference remains in the high performance the LiDAR can handle, capable of handling both L2 ADAS as well as L3+ highway autonomy, allowing automakers to sell premium options in L3 highway driving,” the analyst said. You can prioritize security with ADAS.”
Against this background, Chatterjee has picked up this thread, and followed it to a logical conclusion: pulling the trigger on LiDAR stocks which he sees as winners going forward. In fact, the analyst sees that a particular pair of stocks is providing gains of more than 200% in the coming year.
And it turns out that he is not alone; use of TipRank Database, we can see that both are rated as strong buys by the consensus of analysts. let’s take a closer look.
Luminor Technologies (Lazari,
Following the SPAC merger with Gores Metropoulos, we will begin with Luminar, one of the first lidar companies to go public back in December 2020. The company has established itself as a leader in this nascent sector with a focus on bringing mass-produced automotive-grade products to market without breaking the bank. The technology is designed with wide dispatch in mind, suitable for both passenger vehicles and commercial trucks.
The company is moving from its older Hydra system to the more capable Iris and the auto industry has clearly been affected. Luminar has already signed deals with various OEMs including giants like Nissan, Volvo and Mercedes.
Interest from the industry has been reflected in an expanded top-line, as was on offer in the latest set of quarterly results for 2Q22. Revenue reached $10 million, a 57% increase over the same period last year and outpacing the road’s forecast of $8.52 million. There wasn’t much breakout on the bottom-line, with EPS of $0.27 — falling short of $0.27 — expected by analysts.
However, the company raised its full-year 2022 revenue outlook by $40 million to between $40 million and $45 million. The consensus was looking for $41.35 million.
JPMorgan’s Chatter seems to have grown a lot in the cards, noting that the company is “positioned not only as an industry leader with respect to LiDAR technology, but also more broadly with regard to autonomous driving technology.” Is.”
Chatterjee elaborated, “We anticipate that Luminar will end the decade with the highest revenue between Peer Group and Company in 2030, many to match the consensus and implicit targets of $4.5 billion and $5 billion. There will be levers.” “Luminar has the largest number of wins for a standalone LiDAR company, which includes both traditional and non-traditional OEMs, and also has revenue potential, with investments in the software stack with Zensact around software, for the company. The revenue opportunities have to be huge relative to peers that are focused on hardware differentiation alone.”
To that end, Chatter thinks LAZR has a way to go, and somehow, we mean 282% upside. Those returns are what investors are looking for, should the stock make it all the way to Chatterjee’s street-high $30 price target. Needless to add, the analyst’s rating is an overweight (ie buy). (To see Chatterjee’s track record, see click here,
Overall, with 9 recent analyst reviews on record, including 7 buys and 2 holds, LAZR has earned its Strong Buy analyst consensus rating. Shares are selling for $7.86 and their average price target of $16.78 is ~113% up for the next 12 months. ,View Luminar stock forecast on TipRanks,
Innoviz Technologies (INVZ,
The next JPMorgan pick we’re looking at is Innoviz Technologies. The company currently has two LiDAR hardware systems available, the first generation InnovizOne and the second generation InnovizTwo. These products have been tested and used in many driving applications and situations, including robotics, pavement delivery technology, industrial drones and consumer vehicles, as well as heavy trucks, industrial equipment and commercial drones. Both systems are compatible with level 3-5 autonomous vehicles. Innoviz’s LiDAR system can be complemented by the company’s Perception software package.
The company’s next flagship product, the ‘next generation’ Innoviz360, is under final development for both automotive and non-automotive applications. It is scheduled for marketing in the fourth quarter of this year.
For companies trying to break into a new segment, it is important to bring the big wigs of the industry on board. This is something Innoviz already seems to be adept at. Innoviz was the first company to win the L3 LiDAR design with BMW and has recently followed up with news that Volkswagen’s subsidiary, CARIAD, selected the company as its LiDAR sensor and software supplier for all AVs under the Volkswagen brand. Is. It’s a big catch and has increased the forward-looking order book from $2.6 billion to $6.6 billion.
However, it’s still early days for this company on the revenue front, with the top-line showing just $1.79 million in 2Q22. Still, it amounts to 77.2% year-over-year growth.
Although Chatterjee feels that the company has only a “narrow portfolio” of hardware products, he highlights the fact that Innoviz is setting up “the largest order book among pure public LiDAR companies at the moment”.
“In addition,” the analyst continued, “outside of the expansion opportunities with Volkswagen with more brands and more vehicle models signing up to take advantage of the platform being established by CARIAD, we are looking at existing and potential Also expect win-win speed with new. Customers to accelerate after validation by two major auto OEMs. We expect multiple wins, big volume, LiDAR balance of cost and performance and highway autonomy at high speed The ability to support Innoviz will position Innoviz to grow revenue well into the end of the decade, while cost discipline should drive profitability.”
As such, Chatterjee slapped an overweight (i.e. buy) rating on Innoviz shares with a $22 price target. If that figure is met, investors will be sitting on a whopping 316% return a year from now.
Do other analysts agree with Chatterjee? As it turns out, they do. With 100% Street Support or a 4 Buy rating to be precise, the message is clear: INVZ is a strong buy. At $8.67, the average price target holds an upside potential of ~64%. ,View Innoviz Stock Forecast on TipRanks,
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Disclaimer: The opinions expressed in this article are those of the featured analyst only. The content is to be used for informational purposes only. It is very important to analyze yourself before making any investment.