Will Luminar Technologies Need To Raise $1B In Capital? This Bearish Analyst Answers
Portfolio Pulse from Priya Nigam
Luminar Technologies Inc (NASDAQ:LAZR) shares dropped after BofA Securities downgraded the stock from Neutral to Underperform and cut the price target from $3.50 to $1.20. The downgrade was due to reduced volume forecasts, reflecting model launch delays and lower expectations for vehicles adopting LIDAR technology. Analyst John Babcock cited weaker demand for electric vehicles, higher near-term costs, and delayed breakeven expectations as reasons. Luminar may need to raise $1 billion in capital by 2025, potentially diluting existing shareholders.
April 10, 2024 | 4:25 pm
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Luminar Technologies downgraded by BofA Securities with a significant price target cut from $3.50 to $1.20, reflecting concerns over volume forecasts, EV demand, and a potential $1 billion capital raise.
The downgrade and price target cut by BofA Securities directly impact Luminar Technologies' stock perception, indicating a bearish outlook. The potential need to raise $1 billion in capital by 2025, as mentioned, could lead to significant dilution of existing shares, further pressuring the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100