Ouster Inc Shares Rise 4.75% on July 9 Amid Analyst Forecast

Ouster Inc (OUST) shares rose 4.75% to $24.25 on July 9, with a trading volume of 1,606,210 shares, 47% of the average daily volume. The stock's 52-week high is $26.07, and its 52-week low is $5.84. Analysts forecast an average target price of $11.40, implying a downside of 52.99% from the current price. The estimated GF Value for OUST is $12.88, suggesting a downside of 46.89%.

Ouster Inc. (OUST) shares gained 4.75% to $24.25 on July 9, with a trading volume of 1,606,210 shares, representing 47% of the average daily volume. The stock's 52-week high is $26.07, and its 52-week low is $5.84. Analysts forecast an average target price of $11.40, implying a potential downside of 52.99% from the current price. The estimated GF Value for OUST is $12.88, suggesting a potential downside of 46.89% [1].

Ouster, a pioneer in 3D sensing solutions for autonomous vehicles, smart infrastructure, robotics, and industrial automation, places significant emphasis on research and development (R&D). In 2024, R&D spending represented 52.2% of the company’s revenues, highlighting its commitment to advancing its proprietary digital lidar platform and maintaining a competitive edge in the rapidly evolving lidar industry [1][2].

This substantial R&D investment is crucial as Ouster transitions from a hardware-centric model to a more software-driven, recurring-revenue approach. The company is enhancing sensor range and resolution, reducing production costs, and developing edge-computing capabilities, key drivers of broader adoption across the automotive and industrial sectors. These developments strengthen Ouster’s value proposition to original equipment manufacturers (OEMs) and enterprise customers, paving the way for scalability and improved margins [1][2].

Moreover, R&D enables Ouster to tap into new applications and markets, such as smart cities and logistics automation. By customizing its solutions and aligning with evolving regulatory requirements, the company remains agile and responsive to global demand and emerging trends [1][2].

Ouster’s financial performance is significantly dependent on its ability to maintain this leading position, which is further dependent on its investments in research and development. In essence, OUST’s R&D investments are not just operational expenses but strategic assets that fuel innovation, expand market opportunities, and reinforce its vision to make lidar technology ubiquitous across industries [1][2].

Among OUST’s competitors, Aeva Technologies (AEVA) and Luminar Technologies (LAZR) also rely heavily on R&D to drive innovation in their respective lidar technologies. Aeva Technologies advances proprietary FMCW LiDAR technology, while Luminar Technologies focuses on improving product range, resolution, and reliability [1][2].

Despite the positive outlook, OUST is currently trading at a price-to-sales multiple of 6.85, higher than the industry average of 1.66, and carries a Value Score of F, indicating an expensive valuation [1][2]. The Zacks Consensus Estimate for OUST’s second-quarter and third-quarter 2025 EPS has moved up 11.1% and 11.5%, respectively, over the past 60 days, suggesting a positive outlook for the company’s financial performance [1][2].

References:
[1] https://www.nasdaq.com/articles/can-ousters-rd-spend-lead-lidar-shift-grow-market-presence
[2] https://finance.yahoo.com/news/ousters-r-d-spend-lead-151700671.html