Ouster, Inc (OUST) Stock Forecast & Price Target

Ouster Inc. has demonstrated a solid financial performance, recording a non-GAAP gross margin of 47% in the third quarter, reflecting a year-over-year improvement of 300 basis points driven by enhanced scale and product mix. The company reported a substantial year-over-year increase in sensor shipments, with approximately 7,200 units delivered, representing an 82% growth compared to the same quarter last year and a 31% increase from the previous quarter. Additionally, Ouster's balance sheet remains robust, showing an increase in cash and equivalents to $247 million, which bolsters its financial stability and supports continued operational efficiency and long-term profitability goals.

The financial outlook for Ouster Inc. is negatively impacted by an ongoing EBITDA loss of $10 million, which remained stagnant year-over-year despite increasing research and development costs aimed at next-generation products. The company's potential delay in series production and competition from other LiDAR technologies could hinder revenue growth, compounded by adverse macroeconomic conditions affecting companies that went public via SPAC. Furthermore, with Ouster's price target multiple being significantly lower than the peer group average, coupled with concerns about slower LiDAR adoption and average selling price increases potentially limiting market opportunities, the company's financial trajectory appears precarious.