- Needham Analyst Rajvindra Gill reiterated buy on Velodyne Lidar, Inc VLDR with a target price of $3.
- Velodyne announced additional cost reduction measures that it expects will benefit the bottom line short term and through CY23.
- Velodyne’s lower cost of ownership allows for less cash burn.
- The three new multi-year partnerships announced during the quarter expand the catalog of design wins (in non-automotive markets).
- The transition to new sensors may push margins into positive territory through 1H23.
- The announced merger creates a complete technology portfolio and accelerates the wider adoption of LiDAR.
- He didn’t see cash as a major concern as management has reduced its cash usage and the upcoming merger is likely to fill the coffers.
- He was increasingly positive about the four-pillar story.
- Craig Hallum Analyst Richard Shannon upgraded Velodyne Lidar to hold from sell and lowered the price target to $0.85 from $1.
- He notes that the company’s quarter reflects that it has met its commitment to right-sizing the ship.
- The company’s guidance is expected to include continued operating cost reductions and supply chain improvements, and shows stabilizing business fundamentals that should significantly reduce cash burn and give investors more confidence to trade negative EV stocks on today’s cash balances.
- However, the strongest momentum for investors in this stock right now is its proposed merger with Ouster, Inc PUSH AWAY.
- Oppenheimer Analyst Colin Rusch has downgraded Velodyne Lidar from Outperform to Perform.
- The analyst believes the combined platform will significantly outperform the competition with an industry-leading IP and product portfolio combined with a strong balance sheet and capable management team.
- also read: Why are lidar makers Velodyne and Ouster rallying today?
- Price promotion: VLDR shares traded 13.13% lower at $0.7366 on the last check Wednesday.
- Photo via company
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