Velodyne Lidar, Inc. (VLDR) PT Lowered to $5.90 at Needham & Company

Needham & Company analyst Rajvindra Gill lowered the price target on Velodyne Lidar, Inc. (NASDAQ: VLDR) to $5.90 (from $7.50) while maintaining a Buy rating.

The analyst commented, "Velodyne is undergoing a transition under the leadership of the new CEO Ted Tewksbury. The biggest challenge, in our view, is lowering the costs of the LiDAR sensors to <$500 in order to spur broader adoption, primarily in the passenger Automotive markets. We believe the company is actively taking steps to reduce the costs through offshoring to Thailand (FN), developing new sensor architectures and miniaturization/modularization. This will be a long-term process. LiDAR volumes are increasing as VLDR drives the price points lower, and we are witnessing a higher mix of solid state sensors. For 2022, the supply constraints, specifically on the FPGA side, are cutting into production, and hence we see revenue to decline this year. We lower our 10-year DCF PT to $5.90 to account for a higher risk-free rate and higher expected operating losses."

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