OUST - Ouster: The Future Remains Uncertain
2024-06-20 05:58:47 ET
Summary
- Ouster shares have rebounded approximately 250% from their all-time low in October of last year.
- The company is experiencing impressive top-line growth but remains very unprofitable and will likely remain so for the foreseeable future.
- Recent insider buying into the company's very busted IPO merited a deeper dive.
- A full investment analysis follows in the paragraphs below.
Shares of LiDAR concern Ouster, Inc. ( OUST ) have rebounded by some 250% off their all-time low after cratering 98% as the much-ballyhooed autonomous vehicle revolution has yet to materialize. The company's software should actuate further adoption of LiDAR, with analysts forecasting 41%, 51%, and 61% annual top-line growth through 2026, after only 2% (apples-to-apples) in FY23. Trading at five times FY24E sales with sub-40 gross margins and not forecasted to breakeven until FY26, the recent insider buying into this very busted IPO merited a deeper dive. An analysis follows below....
Ouster: The Future Remains Uncertain