Why recent LiDAR partnerships matter for Innoviz Technologies (NasdaqCM:INVZ)

Recent announcements around InnovizTwo evaluations set the stage for Innoviz Technologies (NasdaqCM:INVZ), including an on-sensor perception software agreement and a separate letter of intent with LOXO for L4 autonomous delivery vehicles.

These new LiDAR evaluation agreements come as momentum has picked up in the short term, with 1 day, 7 day and 30 day share price returns of 16.6%, 22.0% and 33.8% respectively. However, the 1 year total shareholder return is still down 3.5%.

If the recent LiDAR news has you thinking about where autonomous and AI related hardware could head next, it might be worth scanning 39 AI infrastructure stocks

With the stock still down over 3% on a 1 year view despite recent gains and trading below the average analyst price target, should you view Innoviz as undervalued today, or assume the market is already pricing in potential future growth?

Most Popular Narrative: 55% Undervalued

At a last close of $0.92 versus a narrative fair value of $2.03, the most followed view sees a substantial gap between price and long term potential.

Expansion into nonautomotive markets, such as smart infrastructure, security, robotics, and traffic management, is driving incremental growth, with recently launched products like InnovizSMART already gaining early traction and commanding higher ASPs and margins, thereby improving long term gross margins and revenue diversification.

Curious how fast revenue is assumed to ramp, how margins are expected to shift, and which future earnings multiple underpins that $2.03 figure? The full narrative lays out a detailed growth path, a profitability timeline, and an earnings valuation framework built from explicit revenue, margin and discount rate assumptions.

Result: Fair Value of $2.03 (UNDERVALUED)

However, this upside narrative still leans on development contracts converting smoothly into high volume production and on the company managing cash burn without heavy shareholder dilution.

Next Steps

With mixed sentiment around risk and reward running through this story, it makes sense to look at the full picture now and decide where you stand. Start with 2 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.