Luminar (NASDAQ:LAZR) stock is taking a beating on Wednesday as a new rating and price prediction weigh on shares.
Goldman Sachs analyst Mark Delaney is behind the news, as he downgraded shares from a “neutral” rating to a “sell” rating. For comparison, the consensus rating for LAZR stock is “hold” based on eight opinions.
In addition to the downgrade, Delaney also introduced a new price target of $5 for LAZR stock. To put that in perspective, the stock closed Tuesday at $7.73 per share. Additionally, the consensus price target for LAZR is $13.77.
What’s Behind the Bearish LAZR Stock Rating?
Here’s what the Goldman Sachs analyst had to say about Luminar in a note to clients obtained by CNBC:
“We see downside to the company’s margin outlook with the company targeting revenue per vehicle of ~$1k which we believe implies ASPs [average selling price] roughly 50-100% higher than key competitors for MEMs/solid state lidar.”
Trading volume for LAZR stock comes in at 4 million shares as of this writing. That’s still below the company’s daily average trading volume of 12.9 million shares. Even so, the stock is down 10.5% as of Wednesday morning.
Investors seeking out more of the latest stock market news today are in luck!
InvestorPlace is home to all of the most recent stock market news traders need to know about on Wednesday! A few examples include why shares of 89bio (NASDAQ:ETNB), WaveDancer (NASDAQ:WAVD) and Cerberus Cyber Sentinel (NASDAQ:CISO) stock are moving today. You can read up on that news at the links below!
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On the date of publication, William White 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.
