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Innoviz: LiDAR Sensors  Driving Growth
Stock Analysis & Ideas

Innoviz: LiDAR Sensors Driving Growth

Innoviz Technologies (NASDAQ:INVZ) is an Israeli technology firm that makes light detection and ranging (LiDAR) sensors for autonomous vehicles.

InnovizOne and InnovizTwo are solid-state LiDAR sensors built exclusively for automotive applications by Innoviz. They’re tough, light, and suitable with Level 3-5 self-driving cars.

In April, the firm went public through a SPAC merger in order to generate fresh funds from investors searching for innovative options in the advanced automotive sector.

Strong LiDAR Market Growth

In recent years, LiDAR technology has become a critical sensor for producers of self-driving cars and vehicles with advanced driver assist systems (ADAS), as it helps to ensure their safety.

According to a report from MarketsandMarkets, the LiDAR market is expected to grow from $1.3 billion in 2021 to $3.4 billion in 2026.

The need for LiDAR is expected to rise in the near future as more vehicles are equipped with ADAS or, possibly, autonomous highway driving capabilities.

Given the stupendous growth in this market, Innoviz is sure to gain from it.

Growth Catalysts

Innoviz’s rising presence in the LIDAR industry, bolstered by its unique product range and constant efforts to win new contracts, should act as major catalysts.

Last month, the business announced a partnership with JueFX, an AI-driven technology firm, to deploy InnovizOne LiDAR on traffic poles and bridges to monitor traffic behavior in real-time.

The latest agreement should strengthen Innoviz’s foothold in the LIDAR market.

Innoviz recently released its 3Q21 earnings, which showed a 106% rise in overall revenues from the year-ago quarter. On the cash front, the company’s cash position climbed to $324.6 million in the third quarter, up from $58.0 million in the year-ago quarter.

Aside from that, the quarterly report served as a reminder to investors that Innoviz is working hard to maintain its position as the industry’s top LiDAR provider. Indeed, the company showed continued progress on key automotive programs.

Furthermore, Innoviz CEO Omer Keilaf expressed optimism about forming additional collaborations in the future.

He said, “As the global LiDAR market moves towards the convergence on multiple programs, Innoviz is uniquely positioned to secure new design wins due to our extensive automotive experience, our growing capabilities, and our portfolio of products.”

Wall Street’s Take

Turning to Wall Street, the stock has a Strong Buy consensus rating, based on 3 unanimous Buys assigned in the past three months. Meanwhile, the average Innoviz price target of $10 implies 63.7% upside potential to current levels.

Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates  Read full disclaimer >

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