Innoviz Technologies assumed with an Overweight at JPMorgan

JPMorgan analyst Jesus Gonzalez Lopez assumed coverage of Innoviz Technologies with an Overweight rating and price target of $7, down from $13. The firm remains constructive on the long-term outlook for lidar suppliers and expects the ramp-up of production volumes as automakers roll out second generation electric vehicles to help drive greater adoption of lidar systems, enabling both Innoviz and Luminar to reach profitability in 2027. However, the analyst remains cautious on the near-term outlook for both companies, saying major global automakers have recently walked back their short-term EV production targets due to softer consumer demand and higher than expected manufacturing costs. This suggests the risk to lidar supplier volumes in 2024 “likely skews to the downside,” the analyst tells investors in a research note.