Cantor maintains Ouster stock Overweight, $11 target ahead of earnings

Published 05/05/2025, 13:32
Cantor maintains Ouster stock Overweight, $11 target ahead of earnings

Monday, Ouster Inc. (NASDAQ: NASDAQ:OUST) received a reiterated Overweight rating and a steady $11.00 price target from Cantor Fitzgerald. According to InvestingPro data, analysts’ targets range from $11 to $17, suggesting significant upside potential from the current price of $8.33. The company’s shares have shown strong momentum, gaining 7.62% in the past week. The firm’s focus for the upcoming first quarter 2025 earnings report, set to be released after the market closes on Friday, centers on the company’s revenue and sensor shipments. The expectations for the first quarter’s revenue are pegged at $31 million, slightly above the FactSet consensus of $30.8 million. This follows impressive revenue growth of 33.41% over the last twelve months, with total revenue reaching $111.1 million.

The upcoming earnings call, scheduled for 5:00 PM ET on Friday, is anticipated to provide insights into Ouster’s performance, particularly regarding the number of sensors shipped during the quarter. Analysts are also keen on updates concerning improvements in the company’s Gross Margins, which currently stand at 36.42%. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 2.8, while holding more cash than debt on its balance sheet.

In addition to the first-quarter figures, analysts will be looking for guidance on the second quarter’s revenue as well as the company’s long-term financial outlook. These projections are critical for investors to gauge the company’s future performance and strategic direction. Notably, two analysts have recently revised their earnings estimates upward for the upcoming period, according to InvestingPro, which offers 8 additional key insights about Ouster’s financial health and market position in its comprehensive Pro Research Report.

Ouster’s management will address these topics and potentially more during the earnings call. The discussion is expected to offer a clearer picture of the company’s current position and its trajectory in the near term.

Investors and stakeholders of Ouster Inc. are advised to tune in to the earnings call for a comprehensive update on the company’s financials and strategic initiatives moving forward.

In other recent news, Ouster Inc. reported its fourth-quarter 2024 earnings, showcasing a revenue of $30 million, which exceeded the expected $29.75 million. However, the company reported an EPS of -0.48, missing the forecasted -0.35. Despite this, Ouster remains optimistic about its revenue trajectory, projecting a revenue range of $30 million to $32 million for the first quarter of 2025. The company concluded the fiscal year 2024 with a robust financial position, holding $175 million in cash and equivalents and no debt. Oppenheimer initiated coverage on Ouster with an Outperform rating and a price target of $16, citing the company’s strong market position and growth potential in the Industrial AI sector. Meanwhile, Cantor Fitzgerald raised its price target for Ouster to $11 from $10, maintaining an Overweight rating due to the company’s diverse product line and improved gross margins. Additionally, Ouster appointed Kenneth Gianella as its new CFO, effective May 19, 2025, as part of its strategic finance initiatives. The company also adjusted its board class terms to balance director membership, ensuring an equal distribution among the classes.

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