Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Luminar’s price target raised at JPMorgan amid confidence in ramp, profitability targets

Published 2023-03-06, 05:12 p/m
© Reuters
LAZR
-

By Davit Kirakosyan

JPMorgan raised the price target on Luminar Technologies (NASDAQ:LAZR) to $20.00 from $15.00 while maintaining an Overweight rating, noting that the Investor Day provided confidence in the company's ramp and profitability targets.

According to the firm, Investor Day successfully allayed concerns about the LiDAR industry's slowing momentum and Luminar itself. The company's targets for ramping up series production vehicles remain on track without any significant delays, and its pipeline of engagements is robust. This bodes well for strong forecasts of additional wins in 2023.

The company set specific targets for achieving profitability for its "core business" in 2024 and for the entire company in 2025, demonstrating its confidence in its series production ramp. The company expects to become gross margin positive in Q4/23, achieving profitability for its core hardware business by the end of 2024, and reaching profitability for the entire company in 2025. Additionally, Luminar aims to have $300 million of cash on its balance sheet by the end of 2023.

“If there was any disappointment at all from the investor day, it was the absence of new customer win announcements – although timing on those is tough to predict,” said the firm.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.