Velodyne Lidar Analysts Expect Cost Cut Measures To Drive Bottom Line; Bet Big On Ouster Acquisition
Needham analyst Rajvindra Gill reiterated Buy on Velodyne Lidar, Inc (NASDAQ: VLDR) with a $3 price target.
Velodyne announced additional cost-cutting measures, which he expects to benefit the bottom line in the near term and through CY23.
Velodyne's lower operating expenses enable lower cash burn.
The three new multi-year partnerships announced in the quarter expand the catalog of design wins (in non-auto markets).
The transition to new sensors can push margins into positive territory by 1H23.
The announced merger creates a complete technology portfolio and accelerates broader LiDAR adoption.
He did not see cash as an issue significantly, as management has reduced its cash burn, and the pending merger will likely add to the coffers.
He was incrementally more positive on the four-pillar story.
Craig-Hallum analyst Richard Shannon upgraded Velodyne Lidar from Sell to Hold and cut the price target from $1 to $0.85.
He notes the company's quarter reflected it making good on its commitment to right-size the ship.
The company's guidance likely continued operating expense reductions and improving the supply chain, showing stabilizing business fundamentals that should meaningfully reduce cash burn and give investors more confidence in a stock trading with a negative EV on today's cash balances.
That said, today's most powerful dynamic for investors in this stock is the proposed merger with Ouster, Inc (NYSE: OUST).
Oppenheimer analyst Colin Rusch downgraded Velodyne Lidar from Outperform to Perform.
The analyst thinks the combined platform is poised to substantially outgrow peers with an industry-leading IP and product portfolio combined with a strong balance sheet and a competent management team.
Also Read: Why Are Lidar Manufacturers Velodyne And Ouster Rallying Today
Price Action: VLDR shares traded lower by 13.13% at $0.7366 on the last check Wednesday.
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Latest Ratings for VLDR
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | Needham | Maintains | Buy | |
Mar 2022 | Craig-Hallum | Downgrades | Hold | Sell |
Nov 2021 | Citigroup | Downgrades | Buy | Neutral |
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