AEye (NASDAQ:LIDR) stock is on the move Tuesday and it’s got to do with an analyst initiating coverage of the stock.
The coverage that sent LIDR stock off this morning came from Roth Capital analyst Suji Desilva after-hours Monday. This had them initiating coverage of the stock with a buy rating and a $15 price target.
There aren’t many analysts covering LIDR stock but the current consensus rating is buy. That comes from two buy ratings for the shares. The consensus price target is 1$14.50, which represents a possible 138.49% upside.
So why is Desilva taking a bullish stance on LIDR stock? The analyst is expecting the company’s iDAR platform to see more use in certain vehicle models. That includes several high-performing ones looking for highway safety with autonomous vehicles (AVs).
In addition to that, the Roth Capital analyst believes the company’s licensing business model will do well for it. That includes possible gross margins of 80%. Talk of strong partnerships are also behind their decision.
The new rating for LIDR stock has traders taking extra interest in the shares. As of this writing, more than 68 million units of the stock have changed hands. That’s a massive jump from the company’s daily average trading volume of around 913,000 shares.
LIDR stock was up 26.1% as of Tuesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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