Velodyne Lidar Analysts Expect Cost Cut Measures To Drive Bottom Line; Bet Big On Ouster Acquisition

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  • Needham analyst Rajvindra Gill reiterated Buy on Velodyne Lidar, Inc 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 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 ReadWhy 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.
  • Photo Via Company
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