Goldman Sachs Downgrades Luminar Technologies (LAZR) to Sell

March 21, 2023 5:34 PM EDT
Get Alerts LAZR Hot Sheet
Price: $6.82 +1.19%

Rating Summary:
    8 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 12 | New: 8
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Goldman Sachs analyst Mark Delaney downgraded Luminar Technologies (NASDAQ: LAZR) from Neutral to Sell with a price target of $5.00.

The analyst commented, "We downgrade Luminar stock to Sell from Neutral, to reflect what we believe is margin risk and a premium valuation, with 35% downside to our unchanged 12-month price target of $5 vs. our coverage group median of 14% upside. We continue to see Luminar as one of a handful of leaders in the very competitive lidar industry (an industry that has numerous lidar providers, and many AV companies also have in-house lidar technology), as evidenced by design wins with several companies in the ADAS/AV ecosystem. However, we see downside to the company's margin outlook with the company targeting revenue per vehicle of ~$1k which we believe implies ASPs that are roughly 50-100% higher than key competitors for MEMs/solid state lidar. While Luminar attributes this ASP strength in part to software, and we believe it has some opportunities in this regard, the market for ADAS/AV software is highly competitive. Moreover, we believe that current valuation is expensive (Luminar is trading at ~4X EV/2025 revenue vs. Innoviz and Hesai at ~1X even though we believe these competitors also have meaningful customer traction). We'd look for Luminar to have more significant design-wins and margin differentiation (especially in software) that would imply it could meet its margin objectives to be more positive on the stock."

For an analyst ratings summary and ratings history on Luminar Technologies click here. For more ratings news on Luminar Technologies click here.

Shares of Luminar Technologies closed at $7.80 yesterday.

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