Craig-Hallum bullish on AEye, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of AEye (LIDR) with a Buy rating and $3.50 price target The firm says AEve is a turnaround story that is two years into an upswing, with a compelling product portfolio that has a distinct advantage in long range lidar. Craig-Hallum believes these products have built a strong design win base across auto and non-auto that should drive an inflection in financials in the second half of 2026. Furthermore, the firm sees multiple catalysts emerging over the next few quarters, and the balance sheet gives investors six to eight quarters of runway to see these emerge. The stock trading below cash value gives little credit, which suggests limited downside, while a multi-year outlook suggests this stock can drive 4-5 times returns, adds Craig-Hallum.