• Constellis recently announced a global partnership with Ouster, Inc. to deliver unified security solutions integrating LEXSO, its AI-driven sensor fusion platform, with Ouster’s Gemini and digital lidar technologies.
• This collaboration brings Ouster’s lidar-powered AI directly into advanced security operations, broadening Ouster's reach across both public and private security environments through enhanced 3D situational awareness and real-time threat response.
• We’ll explore how Ouster’s integration into Constellis’s LEXSO platform reinforces its push into mission-critical AI and sensor fusion markets.

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Ouster Investment Narrative Recap

To be a shareholder in Ouster, you need to believe in the company's ability to drive adoption of its lidar-powered AI across security, transportation, and automation markets while managing the pressures of industry competition and margin volatility. The recent Constellis partnership strengthens Ouster’s foothold in mission-critical AI, but this news, while positive for market expansion, does not materially change the immediate catalyst around continued revenue growth from software and large-scale contracts, nor does it minimize the short-term risk of competitive pricing pressure.

Among Ouster’s recent announcements, the BlueCity expansion in Utah stands out for illustrating real-world adoption of its traffic management solutions. When combined with the new security-focused partnership, these developments underscore the company’s focus on commercial deployments that could influence the pace of high-margin software bookings, a key catalyst in the near term. However, investors should keep in mind that these partnerships exist alongside heightened competition from other lidar providers and evolving customer needs.

On the other hand, investors should not overlook the risk that intense price competition in the lidar space can...

Ouster's narrative projects $335.6 million revenue and $30.3 million earnings by 2028. This requires 38.7% yearly revenue growth and a $122.3 million earnings increase from -$92.0 million today.

Uncover how Ouster's forecasts yield a $35.00 fair value, in line with its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community span US$5 to US$43.26 per share. With competition among lidar suppliers a major risk, these differing views reflect wide uncertainty about Ouster’s ability to sustain its revenue growth trajectory over time.

Explore 12 other fair value estimates on Ouster - why the stock might be worth as much as 24% more than the current price!

Build Your Own Ouster Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ouster research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Ouster research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ouster's overall financial health at a glance.

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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.