AEye downgraded to Neutral at DA Davidson

DA Davidson analyst Thomas Diffely assumed coverage of AEye and downgraded the firm’s rating to Neutral from Buy with a price target of $1.00, down from $5.00. The company’s Q4 earnings topped expectations but its Q1 guidance was lowered due to manufacturing delays, with 4Sight M volume production impacted by software revisions, the analyst tells investors in a research note, also stating that AEye’s supply chain challenges are driving higher costs. While still positive on the company’s technology leadership and "unique hybrid business model", DA Davidson prefers to be on the sidelines until it gains more "strategic clarity".