I've been following LIDAR space for as long as there has been one. INVZ stands out.-
Innoviz, Luminar rated at ‘Buy’, Velodyne at ‘Sell’ as JP Morgan assesses LiDAR players
Sep. 20, 2022 11:27 AM ET
Innoviz Technologies Ltd. (INVZ)
JP Morgan analyst Samik Chatterjee told clients that while opportunity is likely to abound in LiDAR technologies in coming years, stockpicking remains paramount in the sector.
“We believe the debate around value-add of a LiDAR in asensing suite has been long settled, with decisions to exclude LiDARs largely a cost-based decision rather than performance,” he wrote. “However, debates remain rife in relation to the winning technology approach in LiDAR, the differentiation between players and the recipe for success as automakers pursue a multi-pronged strategy of preparing some vehicle platforms for L2 functionalities while some OEMs look to leap frog to L3+ with some other developments.”
In terms of top picks, Chatterjee selected Innoviz (NASDAQ:
INVZ) and Luminar (NASDAQ:
LAZR) as the best options for investors at present. Meanwhile, Cepton (NASDAQ:
CPTN) and Velodyne Lidar (NASDAQ:
VLDR) were rated at Hold and Sell-equivalent ratings, respectively.
He explained that Innoviz (
INVZ) is particularly underappreciated as its industry-leading order book and “compelling margins” add to its observable ramp in revenue.
“We expect the combination of numerous wins, large volume wins, balance of LiDAR costs and performance and ability to support highway autonomy at high speeds to position Innoviz to ramp revenues well into the end of the decade, while cost discipline should drive profitability,” Chatterjee wrote.
