VLDR Stock Forecast: Is VLDR a good Stock to Buy?     

VLDR Stock Forecast: 12-month target is $3.53.


VLDR Stock Forecast: Latest Price and Past Performance

  • Last 1 Month: (-30%
  • YTD: (-82%)
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VLDR Stock Forecast: Observations and Insights

Autonomous driving vehicles are the talk of the town for the past couple of years and the same is visible by electric vehicle companies like Tesla trying their hands at developing more sophisticated autonomous driving models every passing year. Sectors associated with this like the sensor industry have got a big boost in these years.

  • Velodyne Lidar Inc is right on the money as it delivers sensors to auto industry players, helping them in the success of auto-driving vehicles. The sensors are also put to commercial use in robotics and smart city applications. But the stock performance does not reflect the enthusiasm for the sector. It has fallen more than 80% in the last year as a result of governance issues and bad quarter results. Let’s dissect the factors can that affect stock performance in 2022 and in long term like by 2025 and conclude whether it is a buy or sell indication for Velodyne Lidar Inc (Nasdaq: VLDR)
  • In 2021, shipments of VLDR sensors jumped 15% to 15,000.
  • Amazon announced last month that it has purchased a warrant from the stock which will enable Amazon to purchase 40 million shares of the stock.
  • Analyst at Craig Hallum reduced VLDR’s price target to $1 on 15th August. While there is some positive news, it does not reflect on the recovery of stock yet.

Hence short-term recommendation is to sell the stock.

Also Read: Pton stock forecast

VLDR Stock Forecast 2022

Following are the post-split price targets for 2022

VLDR Stock Forecast: Is VLDR a good Stock to Buy?

The stock is rated as a sell by both mid-term and long-term indicators. There has been no upward or downward review in the last seven days for this company. VLDR’s revenue is predicted to rise at a slower rate than the market as a whole. Analysts have also cut the revenue estimates, predicting a weaker outlook.

VLDR Stock Forecast: Q2 2022 Earnings

  • Total Revenue dropped by 15% from 13.59 M in 2021 to 11.51
  • EPS reported to $0.18

VLDR Stock Forecast: VLDR Stock Forecast 2025

  • The cornerstone of self-driving vehicles- The company may perform well or badly depending on the circumstances, but one thing to be agreed upon is that Velodyne Lidar is the company for the future. As more and more automotive companies are opting for making self-driving vehicles and Velodyne happens to be the biggest and oldest player in this nascent market for the sensors which are imperative for self-driving vehicles.    
  • Less Competition – The only visible competition to Velodyne Lidar Inc is Luminar Technologies and in terms of revenue and sales, Luminar is way behind Velodyne Lidar Inc. While the annual revenue of Luminar is around $13 million, Velodyne reports quarterly revenue of more than this figure. This scarcity of competition may work in favor of Velodyne going forward. It may lead to an imbalance in demand and supply chain leading to an increase in the profitability of Velodyne Lidar Inc.
  • Multiyear agreements – The company has a total of 35 multiyear agreements as of early November 2021 as compared to 26 agreements as of 2020. Also, the volume of delivery is increasing in recent quarters, for example, the company shipped a total of 4400 sensor units during Q3 2021, up from 2600 in Q1 2021. Going forward, the performance of the stock in a couple of years from now will depend on how these agreements will pan out and they are most likely to give a positive boost to the company and in turn to the stock.

VLDR Stock Forecast: Buy or Sell in 2025

There is no doubt that auto-driving vehicles have a bright future ahead. A decade from now, self-driving vehicles will give tough competition to traditional ones, and the industry is expected to boom just like the electric vehicle industry journey in the last couple of years. Sensors will have huge demand, not just in the automotive industry, but in other industries like Robotics, Artificial Intelligence.

Velodyne Lidar as a company has faced hurdles in the past and they are expected to continue in the future, but it needs the right governance and strong management at its heart to start with. If the company gets these issues right and reports good quarter results, then it has a bright future ahead.

If an investor believes in the self-driving auto industry, he can buy Velodyne Lidar Inc’s post for the long term like 2025, but after watching a couple of quarter results in 2022.    

VLDR stock Forecast

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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