Automotive technology company Luminar Technologies Inc. (NASDAQ: LAZR) recently revealed that it will be acquiring a high-performance laser manufacturer, Freedom Photonics, in an all-stock deal.
Following the news, shares of the company remained static to close at $14.10 in Monday’s extended trade, although the stock declined 2% during regular trading hours.
Strategic Impact
The impending acquisition is in line with the company’s strategy of vertically integrating critical lidar components, which is expected to cut costs and improve supply chain management.
The company expects no material impact on its cash position or share count due to the acquisition.
Stock Rating
Recently, Berenberg Bank analyst Michael Filatov reiterated a Hold rating on the stock with a price target of $12, which implies 14.9% downside potential from current levels.
Consensus among analysts is a Strong Buy based on six Buys and two Holds. The average Luminar stock prediction of $26.50 implies 87.9% upside potential from current levels. Shares have declined 53.1% over the past year.
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