Ouster price target raised to $10 from $9 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Ouster to $10 from $9 and keeps a Buy rating on the shares. The firm notes the company reported another strong quarter, with gross margins at levels before the Velodyne Lidar merger, and guided Q1 revs slightly above consensus at the midpoint. Ouster reiterated expectations of opex levels remaining the same or below Q3 2023 levels, and indicated that they expect gross margins to continue to expand as sensor volumes increase, Craig-Hallum ads.