Tesla hates lidar, but analysts like it very much

Approximately 74% of analysts give these stocks a buy rating.

Investors should probably pay attention to the discrepancy between analyst confidence and recent stock market performance. Sometimes, this disagreement can mean opportunity. 

Lidar stocks have been underperforming recently, but Wall Street is increasingly optimistic about this new technology because it will help driverless cars become possible. July 7, as a noted Montrose Sila (Tesla) bull’s sake, as well as laser radar section where a particular stock being boosted again, it is worth noting that Tesla ‘s Musk and Andy Herron Don’t like this technology.

Tesla hates lidar, but analysts like it very much

New Street Research analyst Pierre Ferragu has given a buy rating to lidar manufacturer AEVA Technologies (AEVA) with a target price of $18.

On July 7, Aeva shares rose 3.1% to $10.62. In contrast, the Standard & Poor’s 500 Index rose 0.3%, and the Dow Jones Industrial Average rose 0.3%.

The buy rating came at the right time. Six listed lidar stocks, including Aeva, have fallen an average of 7% in the past month. The rate of return in the past three months is not much better, with an average drop of 9%.

In addition to AEVA, the other five lidar companies are: Luminar Technologies (LAZR), Ouster (OUST), Velodyne Lidar (VLDR), Innoviz Technologies (INVZ) and the merger with the special purpose acquisition company CF Capital Acquisition III (CFAC) AEye.

Lidar, as the name suggests, is a lidar-based radar, which is one of the key sensing technologies used by most automakers on the road to develop self-driving cars. Lidar is good at long-distance observation in some environments that the camera can’t see. More importantly, fully autonomous vehicles will require sensor redundancy, and lidar is a way to build this redundancy.

Ferragu likes Aeva because he believes that Aeva has better technical methods than other companies. “Aeva has solved the lidar problem,” the analyst wrote in the July 7 launch report. Aeva has developed a low-cost, low-power, low-linewidth laser, and a silicon photonics circuit capable of measuring more than 1 million pixels per second per beam. “This is a bit of a mouthful, but the low power consumption and silicon-based design mean that Aeva’s solutions are cheaper than competitors’ systems.

Low cost is the key to automotive applications. Industry insiders, including other lidar manufacturers and automotive safety supplier Aptiv (APTV), believe that lidar systems need to reach US$500 per vehicle to be widely used in passenger cars . In 2008, the price of the lidar system was US$80,000, which is already very high. Some systems cost between US$1,000 and US$2,000, but further cost reductions are needed.

Ferragu believes that the industry can achieve this goal and called the value of lidar “unquestionable.” This is worth noting in light of Ferragus’ views on Tesla. He is optimistic about Tesla for a long time, and his current buy rating target stock price is $900.

Tesla CEO Elon Musk doesn’t like lidar. He once said that he doesn’t use lidar even for free. Ferragu believes that, strategically speaking, Lidar should now be attacked. It is expensive, and Tesla does not plan to use it in the near future, while other automakers will use it. In the future, when technology becomes cheaper, Ferragu believes that Tesla’s adoption of lidar will not cause any damage to its brand or competitive position. People may like Tesla and lidar technology at the same time.

Among the six lidar stocks, Aeva seems to be the undisputed champion. As Ferragu gave a new rating of “Buy”, the six analysts who studied the stock all held a “Buy” rating.

The situation of other lidar stocks: Ouster all have a buy rating, which is as good as Aeva, but only four analysts pay attention to this stock. Luminar and Innoviz’s buy rating accounted for 67%, and Velodyne’s buy rating accounted for 56%. At present, AEye has not completed the merger with CF Finance Acquisition, and no analysts pay attention to this stock.

In general, lidar stocks are very popular among analysts, with approximately 74% of analysts giving these stocks a buy rating. The average buy rating ratio of the S&P 500 index constituent stocks is about 55%.

Investors should probably pay attention to the discrepancy between analyst confidence and recent stock market performance. Sometimes, this disagreement can mean opportunity.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/tesla-hates-lidar-but-analysts-like-it-very-much/
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