VLDR Stock Forecast: VLDR Reverses, Will It Breach $2?

VLDR Stock Forecast: VLDR Reverses, Will It Breach $2?

VLDR Stock Prediction: The current momentum of VLDR stock is highly bullish and the trade recommendation is a Strong Buy.

VLDR Stock Performance

  • Last 1 Month: +31.1%
  • YTD: -76.1%

VLDR Stock Technical Analysis

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VLDR stock finally broke above the resistance close to $1. VLDR is now moving above the 50-day Moving Average, throwing a bullish signal for short-term investors. VLDR with current momentum may break above $1.39 and in case of an extended rally may reach up to $2.

VLDR is extremely bullish and the signal is a Strong Buy.

Relative Strength Index

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The RSI for VLDR is 63.31 which is well above the resistance at 50.09. VLDR is set to open on a positive note even on Tuesday as indicated by the technical indicators. On the 14-day RSI chart, VLDR has the potential to rise further before the over-purchased territory begins.

The current momentum of VLDR stock is highly bullish and the trade recommendation is a Strong Buy.

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 buy the stock.

VLDR Stock Forecast: Latest News

  1. Velodyne’s new agreement with Ouster: Velodyne entered into a deal with Ouster (a digital lidar-producing company) in a merger of equals. The combined company is planning to improve lidar adoption and this deal would result in a strong financial position of around $355 million and is planning to increase product offerings, operational efficiencies, and customer base in growing markets. Both companies will operate independently until 2023 when the transactions are expected to be closed. After the transaction, existing shareholders of both companies would own 50% of the combined company.
  2. Velodyne Lidar agreement with Visimind: Velodyne Lidar entered into a multi-year agreement with Visimind (a Swedish Company) to provide integrated solutions, including mapping and vegetation management, powered by VLDR’s technology to their customers in theEMEIA region. This also strengthens their partnership which included a 3-year supply deal for Puck and Ultra Puck lidar sensors, whose shipping has already begun.
  3. The multi-year agreement with Yamaha Motors: Velodyne has signed a multi-year agreement with Yamaha Motors to sell Puck Lidar sensors to eve autonomy (a company owned by Yamaha Motors). Eve autonomy is focused on Factory logistics automation and plans to use VLDR’s sensors on its vehicles to navigate inside factories. VLDR also began to ship sensors this month.
  4. Velodyne Lidar acquires Bluecity: VLDR has recently acquired Bluecity (an AI Company that provides lidar-based smart city solutions). They have been working with each other for many years and with this acquisition, they plan to expand Velodyne’s Intelligent Infrastructural Solution (ISS) which is based on Velodyne’s lidar sensors and Bluecity’s AI software. The smart infrastructure market for lidar is expected to grow from $108M in 2021 to $1.1 B in 2027. So, VLDR plans to create Velodyne lidar-based software solutions by integrating AI in the SaaS model with the lidar sensors.
  5. The multi-year agreement with Stanley Robotics: Velodyne announced a multi-year agreement to sell its lidar sensors to Stanley Robotics for an automated valet parking solution. They aim to improve customer experience and park more cars in a limited area using automated robots equipped with lidar sensors. They started operating in some airports and are expected to start in Europe, Japan, and North America in 2023.

VLDR Stock Forecast: Twitter

VLDR Stock Forecast: Price target for the next 12 months

Average VLDR Stock Forecast for the next 12 Months$0.92
Goldman Sachs$1
Craig Hallum$0.85

Also Read: Pton stock forecast

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: Q3 Results

  • The company’s total revenues were declared as $9.6 million, down 26.2% Y-o-Y.
  • Its gross profit was -$11%, down 129.5% Y-o-Y.
  • Operating expenses decreased by 37.3% Y-o-Y and were reported as $31.4 million.
  • The company’s operating income decreased by 22.9% over a year and was reported as -$42.3 million.
  • Its net income was -$41.6 million, down 24% Y-o-Y. 
  • Revenue per share was $0.05, down 32.2% Y-o-Y.
  • Diluted earnings per share (EPS) were declared as -$0.19, down 30.2% Y-o-Y.
  • Its EBIT was declared as -$42.3 million, down 22.9% Y-o-Y.

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.