Friday - JPMorgan analysts have maintained their Overweight rating on Luminar Technologies (NASDAQ:LAZR) shares, while reiterating the $90.00 price target. According to InvestingPro data, the stock has shown significant volatility, with a 24% gain in the past week despite a 77% decline over the last year. The firm’s analysts highlighted Luminar’s plans to increase its equity financing program by approximately $75 million, bringing the total to around $209 million over the coming weeks. The company aims to utilize the At-The-Market (ATM) equity offering facility at a rate of about $30 million per quarter in 2025. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued.
Luminar Technologies anticipates that its current liquidity will be sufficient through 2026, with the possibility of an additional capital raise required beyond that year. InvestingPro analysis reveals the company carries a substantial debt burden of $583.4 million, though its current ratio of 3.01 indicates adequate short-term liquidity. The company had previously noted the necessity to secure approximately $100 million to extend its liquidity runway post-2026, prior to achieving profitability. However, management has indicated that there may be opportunities to enhance cost efficiencies and reduce future capital needs. InvestingPro has identified 15+ additional key metrics and insights about LAZR’s financial health, available in the comprehensive Pro Research Report.
The analysts expressed a positive outlook on Luminar’s unique technology, which is considered a premium solution for high-speed Level 3+ autonomy sensors. They believe that the company’s technology sets it apart in the long-term market, while near-term initiatives to streamline costs and consolidate platforms are expected to support the sustainability of its business model.
Despite the optimistic long-term view, JPMorgan analysts pointed out that the near-term environment remains uncertain. InvestingPro data shows the company’s challenging financial position, with an EBITDA of -$468.13 million and a concerning cash burn rate. Potential disruptions to automaker production plans could arise due to tariff-induced issues, reminiscent of the challenges faced during the electric vehicle demand slump in 2022/2023. For Luminar, successfully managing cash burn, solidifying automaker and platform partnerships, and executing its business strategy are considered crucial for growth in the long term.
JPMorgan has adjusted its near-term and future financial projections for Luminar, with the estimated EBITDA for 2025 and 2026 now set at -$185 million and -$140 million, respectively. These figures have been revised from the previous estimates of -$130 million and -$115 million. In light of the ongoing uncertainties and the slower ramp-up in series production, JPMorgan has decided to withdraw the December 2025 price target of $90.00.
In other recent news, Luminar Technologies reported its fourth-quarter 2024 earnings, showcasing a notable 45% increase in revenue compared to the previous quarter, reaching $22.5 million. This figure surpassed the forecasted $17.75 million. However, the company’s earnings per share (EPS) fell short, coming in at -$1.42 against an expected -$0.14, highlighting ongoing profitability challenges. Despite this, Luminar shipped over 4,000 Iris sensors in the quarter, totaling 9,000 for the year, and unveiled its next-generation Halo lidar platform. The company also announced a projected revenue growth of 10-20% for the full year 2025, with plans to increase sensor shipments significantly. Analysts noted the company’s strategic shift to the Halo platform, which is expected to drive better economics and broader adoption. Luminar’s cash and liquidity position at the year-end stood at $233 million, with ongoing efforts to streamline operations and reduce costs. The company’s restructuring actions have already led to significant cost savings, and Luminar remains focused on achieving profitability in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.