WestPark Capital Keeps Buy Rating, Raises PT to $3.3 on Innoviz Technologies

WestPark Capital Keeps Buy Rating, Raises PT to $3.3 on Innoviz Technologies

WestPark Capital has maintained its buy rating on Innoviz Technologies (NASDAQ: INVZ) and raised its price target to $3.3, following the company's strong second-quarter (Q2) 2025 earnings report. The financial results, released on July 2, 2025, showed revenue growth and strategic expansions into non-automotive markets.

Innoviz reported Q2 2025 revenue of $9.75 million, surpassing analyst estimates of $9.00 million [1]. The company's first-half 2025 revenues totaled $27.1 million, already exceeding full-year 2024 results [1]. Despite this growth, Innoviz shares experienced a significant drop of 13.4% following the earnings announcement, trading at $1.57 [1].

The company continues to make strides in the automotive sector, executing a statement of work (SOW) with a top five global original equipment manufacturer (OEM) for a Level 3 production passenger vehicle program [1]. CEO Omer Keilaf stated, "We've already begun shipping units to the customer, and we expect to ship hundreds of units in the coming months." This will facilitate a smooth ramp towards the planned data collection campaign as their companies work toward the series production agreement [1].

In a strategic move to diversify its portfolio, Innoviz launched Innoviz Smart, an automotive-grade LiDAR sensor designed for industrial and non-automotive applications [1]. This expansion is supported by new partnerships with Cogniteam, Spausch CCTV, and CronAI, as well as compatibility with the NVIDIA Jetson AGX Orin AI accelerator [1]. Keilaf highlighted the potential of this market, noting that average selling prices (ASPs) for non-automotive deals are several multiples higher than in automotive, with non-automotive ASPs in the several thousands compared to several hundreds for automotive, with faster sales cycles and shorter design phases [1].

Innoviz has significantly reduced its cash burn, reporting Q2 2025 cash burn of $7.3 million compared to $20.7 million in Q1 [1]. The company ended the quarter with approximately $79.4 million in cash and cash equivalents [1]. To ensure ongoing liquidity, Innoviz has established a $75 million at-the-market (ATM) equity program [1]. CFO Eldar Cegla explained, "We intend to use the net proceeds from the ATM for general business purposes, including activities such as R&D operations and supporting our production efforts." [1]

The company reaffirmed its full-year 2025 revenue guidance of $50 million to $60 million and raised its non-recurring engineering (NRE) booking guidance to $30 million to $60 million for 2025 [1]. Innoviz is targeting one to three additional program wins in 2025 beyond the current SOW, with production validation for long-range and short-range LiDAR units scheduled for Volkswagen's 2026 start of production (SOP) [1].

Despite the positive earnings report, Innoviz's stock experienced a significant decline. This drop may be attributed to the company's announcement of a mixed shelf offering, which could potentially dilute existing shareholders [1]. Investors should consider both the company's growth prospects and the potential impact of future equity offerings when evaluating Innoviz as an investment opportunity.

References:
[1] https://theoutpost.ai/news-story/innoviz-technologies-reports-strong-q2-2025-results-expands-into-non-automotive-li-dar-markets-19046/