Why Are Lidar Stocks LAZR, INVZ Climbing Higher Today?


  • Lidar stocks Luminar (LAZR) and Innoviz (INVZ) are both climbing in early trading.
  • JPMorgan initiated coverage of both names with “overweight” ratings.
  • Both LAZR stock and INVZ stock have very high valuations.
lidar stocks - Why Are Lidar Stocks LAZR, INVZ Climbing Higher Today?

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Lidar stocks Luminar (NASDAQ: LAZR) and Innoviz (NASDAQ:INVZ) are trending on social media this morning and are both climbing 7%-8% in early trading. The stocks are advancing after JPMorgan initiated coverage of both names with “overweight” ratings this morning.

“Lidar, which stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure ranges,” the National Ocean Service explains. In industry, lidar is widely used to enable vehicles to drive autonomously and to facilitate advanced driver assistance systems.

JPMorgan’s Note on Luminar

Analyst Samik Chatterjee began coverage of LAZR stock today with a $30 price target and an “overweight” rating. By the end of this decade, Luminar will have the highest backlog in the lidar sector, the analyst predicted. Chatterjee is bullish on the company due to its focus on “L3+ applications.”

According to the Society of Automotive Engineers, Level 3 refers to a level of vehicular autonomy in which “vehicles have ‘environmental detection’ capabilities and can make informed decisions for themselves, such as accelerating past a slow-moving vehicle. But — they still require human override.”

JPMorgan’s Note on Innoviz

Chatterjee initiated coverage of INVZ today with a $22 price target and an “overweight” rating. Reporting that Innoviz has “the largest order book in the [lidar] industry,” the analyst predicts that the company’s sales will increase a great deal starting in 2026.

Noting that Innoviz has obtained a design win from Volkswagen (OTCMKTS:VWAGY), Chatterjee estimates that Innoviz’s revenue will reach $3.3 billion in 2030, while its margins, boosted by its growth, will be “compelling” at that point.

Background on the 2 Lidar Stocks

As of Sept. 20, LAZR stock has an extremely high trailing price-sales ratio of 85, while the trailing price-sales ratio of INVZ stock was an even more elevated 100.

So far this year, LAZR stock is down 46%, but it has climbed 22% in the last three months. For its part, Innoviz has dropped 12.6% this year but has jumped 38% in the last three months.

On the date of publication, Larry Ramer did not hold (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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/09/why-are-lidar-stocks-lazr-invz-climbing-higher-today/.

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