2 Lidar Stocks Wall Street Predicts Will Double

: OUST | Ouster, Inc. News, Ratings, and Charts

OUST – The efficient remote sensing technology lidar is the core of autonomous driving and other future technologies. With applications in promising industries such as autonomous vehicles and augmented reality, Wall Street analysts expect lidar stocks Ouster (OUST) and Velodyne Lidar (VLDR) to generate substantial gains in the near term. Read on for a closer evaluation of these names.

Light Detection and Ranging (LiDAR) has applications in various fields, such as autonomous vehicles, scanners, and augmented reality (AR). With the Biden administration’s desire to have  50% of cars fueled by electricity to reduce pollution, the lidar market could gain significantly from greater automation. The rising adoption of lidar technology amid the fourth industrial revolution should drive the industry’s growth over the long term. The lidar market is expected to grow at a 22.7% CAGR to $6.71 billion by 2026.

With the rising popularity of lidar technology, particularly in the autonomous vehicles industry, Wall Street analysts predict the shares of lidar companies Ouster, Inc. (OUST) and Velodyne Lidar, Inc. (VLDR) will double in price in the near term.

Ouster, Inc. (OUST)

OUST designs and sells lidar technologies for automation in industries, robotics, smart infrastructure, and vehicles. The San Francisco company went public through a reverse merger with blank check company Colonnade Acquisition Corp. on March 12, 2021.

On August 30, OUST unveiled its plans to expand its lidar technology to the Middle East. The company is currently working with distributors in the region to meet its supply with the rising demand for mechanization. The Middle Eastern expansion provides OUST with new opportunities for its industrial services.

In June, OUST received Buy America and Buy American certifications for lidar sensors manufactured in its San Francisco facility. These certifications imply that OUST can provide service to federally funded agencies.

In its fiscal second quarter, ended June 30, OUST’s total revenue increased 71.9% year-over-year to $7.36 million. This rise can be attributed to a 221.4% year-over-year increase in product revenue. In addition, the company’s gross profit increased 382.2% from the same period last year to $1.90 million. In the first half of its fiscal year 2021, its cash, cash equivalents, and restricted cash rose 1,758% year-over-year to $241.43 million as of June 30.

A $82.82 million  consensus revenue estimate for the next year reflects a 145.8% year-over-year increase. The stock has gained 4.2% in price intraday to close yesterday’s trading session at $8.73.

Each of the three Wall Street analysts that rated OUST have rated it Buy. The 12-month median price target of $18.00 indicates a 106.2% potential upside. The price targets range from a low of $16.00 to a high of $20.00.

Velodyne Lidar, Inc. (VLDR)

VLDR provides lidar sensor technologies for autonomous vehicles, drones, mapping and robotics solutions, and the driver assistance software Vella™. The San Jose, Calif., company went public on September 30, 2020, through a reverse merger with Graf Industrial Corp.

On August 31, VLDR collaborated with Portugal-based robotics company MOV.AI regarding using the former’s Puck™ lidar sensors on the latter’s Robotics Engine Platformto produce Autonomous Mobile Robots (AMR). Regarding  the partnership, Erich Smidt, Executive Director of Europe, VLDR, said, “Partnering with MOV.AI can enable us to bring safety, efficiency and sustainability into the industrial sector on a large, global scale.”

On August 25, VLDR partnered with Renu Robotics, a Texas-based robotics company that specializes in vegetation management using Puck™ sensors in a fully automated electric mower Renubot. After a competitive product review, the sensors were selected to highlight the superior quality that VLDR manufactures in its products.

In July, VLDR partnered with NVIDIA Corporation (NVDA) on its NVIDIA Metropolis Platform for using lidar sensors to prevent road accidents and increase safety.

VLDR’s Product revenue increased 4.8% year-over-year and 13% sequentially to $11.97 million in its  second fiscal quarter ended June 30. This can be attributed to renewed demand for lidar sensors. Its ending cash and cash equivalents rose 107.7% from the prior-year quarter to $76.08 million. In the fiscal half-year ended June 30, its net cash provided by financing activities increased 140.9% year-over-year to $69.20 million.

Analysts expect VLDR’s revenue to improve 98.6% year-over-year to $155.67 next year (fiscal 2022). The stock has gained 1.6% in price intraday  to close yesterday’s trading session at $6.73.

Of the three Wall Street analysts that rated VLDR, two rated it Buy, while three rated it Hold. The 12-month median price target of $13.80 indicates a 105.1% potential upside. The price targets range from a low of $9.00 to a high of $30.00.


OUST shares were trading at $8.47 per share on Thursday afternoon, down $0.26 (-2.98%). Year-to-date, OUST has declined -37.26%, versus a 21.99% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
OUSTGet RatingGet RatingGet Rating
VLDRGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

How to Beat the Market the Rest of the Year?

The easy gains that came at the start of this new bull market are fading away fast. In fact the stock market (SPY) has become quite volatile with gains harder to come by. Gladly there are solutions as will be shared in this commentary to get you on the right path to outperform the market through the end of 2021 and beyond. Read the rest below...

:  |  News, Ratings, and Charts

2022 Stock Market Outlook

The stock market (SPY) has continued on a bullish path in 2021. Will that continue in 2022? And what could happen to awaken the bear market from hibernation? 40 year investment veteran Steve Reitmeister explores this and more in this early edition of his 2022 Stock Market Outlook. Read on for full details below...

:  |  News, Ratings, and Charts

3 Cheap Healthcare Stocks to Buy Right Now

Healthcare stocks saw renewed interest due to the onset of the pandemic, but It’s not only COVID that is driving returns. The Baby Boomer generation is getting older, which is resulting in increased demand for healthcare products and services. That’s why investors should consider adding undervalued healthcare stocks such as Ironwood Pharmaceuticals, Inc. (IRWD), Nu Skin Enterprises, Inc. (NUS), and Bristol-Myers Squibb Co. (BMY) to their portfolio.

:  |  News, Ratings, and Charts

3 Value Stocks to Buy While You Still Can

After outperforming from last fall into the spring, value stocks have been overtaken by growth stocks, but that is expected to change as the economic recovery continues. So, now is the time to start putting your money to work in undervalued companies that offer the potential for strong returns such as Gilead Sciences Inc. (GILD), HP Inc. (HPQ), and CNH Industrial N.V. (CNHI).

:  |  News, Ratings, and Charts

3 Cheap Healthcare Stocks to Buy Right Now

Healthcare stocks saw renewed interest due to the onset of the pandemic, but It’s not only COVID that is driving returns. The Baby Boomer generation is getting older, which is resulting in increased demand for healthcare products and services. That’s why investors should consider adding undervalued healthcare stocks such as Ironwood Pharmaceuticals, Inc. (IRWD), Nu Skin Enterprises, Inc. (NUS), and Bristol-Myers Squibb Co. (BMY) to their portfolio.

Read More Stories

More Ouster, Inc. (OUST) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All OUST News