Goldman Sachs analyst Mark Delaney has maintained their bearish stance on LAZR stock, giving a Sell rating today.
Mark Delaney has given his Sell rating due to a combination of factors surrounding Luminar Technologies’ financial performance and market valuation. Although Luminar reported first-quarter revenue in line with expectations and has begun delivering its lidar sensors for the EX90, indicating progress in production, Delaney holds concerns about the company’s near-term revenue prospects. Specifically, there is an anticipated decline in second-quarter revenue compared to the first quarter, which is projected to fall below both the previous quarter’s revenue and current market expectations.
Furthermore, despite Luminar’s position as a leader in the lidar industry and its substantial forward-looking order book, Delaney considers the stock’s valuation to be overly optimistic. He notes that Luminar’s stock is trading at a premium compared to its peers, which he believes have a comparable level of business development. This discrepancy in valuation, combined with the company’s potential short-term revenue challenges, underpins the rationale for the Sell recommendation.
In another report released today, Bank of America Securities also maintained a Sell rating on the stock with a $1.20 price target.
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Luminar Technologies (LAZR) Company Description:
Luminar is an automotive technology company providing LiDAR hardware and software products to enable vehicle safety and autonomy. The company, through its Autonomy Solutions segment, manufactures and distributes LiDAR sensors. Further, Luminar’s Advanced Technologies and Services division develops application-specific integrated circuits, advanced lasers, and pixel-based sensors.
