An Analyst’s Grim Outlook
When the opening bell chimed on Wednesday, shares of Luminar Technologies Inc LAZR were in a tailspin.
Not a harbinger of smooth sailing, as BofA Securities curtails volume projections due to model launch delays and tempered expectations for LIDAR-equipped vehicles.
The Analyst’s Bearish Stance: John Babcock’s latest diagnosis prescribes a bitter pill for Luminar Technologies, shifting the rating from Neutral to Underperform and docking the target price from $3.50 to $1.20.
The Analysis: EV headwinds could hit Luminar hard, as muted demand stems from cost concerns, range anxiety, and waning EV value propositions, posited Babcock.
Intel from the 2024 BofA Auto Summit unveils a troubling trend: OEMs pump the brakes on EV launches, hinting at a bumpy road ahead.
“Given mounting expenses, EBITDA and cash flow breakeven may be a mirage till 2029/2030, rather than the 2027/2028 horizon previously envisioned,” Babcock grimly forewarned.
In a grim denouement, Luminar Technologies stares down the barrel of a potential $1 billion capital infusion by 2025 – a dose that could unkindly thin out the shareholder herd, according to Babcock.
Market Response: Luminar’s shares took an 8.59% nosedive to $1.76 when the closing bell tolled on that fateful Wednesday.
A snapshot from Luminar itself, capturing the tumultuous landscape.
