December 13, 2023
(THIS SELF-DRIVING CAR TECHNOLOGY STOCK WILL REAP REWARDS FOR ITS INVESTORS)
December 13, 2023
Hello everyone,
Ever heard of Innoviz Technologies (INVZ)?
It’s an Israeli firm, which is listed on the Nasdaq, and it makes sensors and automotive software that are key to enabling driverless cars. The company’s LiDAR (“light detection and ranging”) sensors are used by autonomous vehicles to navigate their surroundings without human intervention.
This is one to sink some funds into. Analysts at three investment banks are arguing that this stock could rise over 400% in the next 12 months.
The company has several major partnerships in the pipeline, including with luxury carmaker BMW which uses Innoviz’s sensors in its advanced driver assistance system for the 7 Series sedan.
Innoviz has also said it has partnerships with Volkswagen and an unnamed major Asian automaker, representing nearly $7 billion in potential revenue over the next decade.
Wall Street has a bullish outlook on this stock.
JP Morgan has the highest price target on Wall Street at $13, implying over 626% returns from current levels. The company’s stock currently trades at $2.20
JPMorgan analysts, Samik Chatterjee and Joseph Cardoso note that they expect the combination of numerous wins, large volume wins, a balance of LiDAR costs and performance, and the ability to support highway autonomy at high speeds to position Innoviz to ramp revenues well through the end of the decade, while cost discipline should drive profitability.
German investment bank Berenberg also sees big potential at the firm, giving it a $12 price target, representing a 570% upside.
The bank’s analyst believes Innoviz is the best-positioned LiDAR player, with around 15% global market share based on expected production volumes.
Analysts at WestPark Capital also expect Innoviz shares to rise by more than 450% to $10 a share over the next 12 months.
Although bullish, other Wall Street brokers are more moderate on the upside for Innoviz shares.
Cantor Fitzgerald analysts expect the stock to rise to $6 a share, which still represents a 235% upside from current levels.
Meanwhile, Rosenblatt analysts believe another top 10 global automaker will select Innoviz for an autonomous driving system by the end of the year. They expect shares to rise 173% to $5.
While optimistic about the self-driving opportunity, analysts do caution that there are risks around competing technologies and regulations that could slow adoption.
High-profile short-seller Citron Research has also backed the company by disclosing a long position in the stock. Citron said Innoviz has over $5 billion in “committed contracts” with most of their customers.
Innoviz posted revenue of $3.5 million for the third quarter, beating Wall Street’s expectations.
The company said the strong result was driven by higher sales volumes of its InnovizTwo sensor and additional non-recurring engineering (NRE) revenue. NRE refers to customers’ upfront cash payments during the development and testing phases.
A stock worth some attention.
Daily Chart
Weekly chart
Cheers,
Jacquie