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Northland analyst Gus Richard upgraded Luminar (LAZR) to Outperform from Market Perform with an unchanged price target of $41 following yesterday's pullback in the stock that was driven by a Reuters article that noted Mobileye's CEO thinks his company could use in house LiDAR for its autonomous car systems by 2025.

He sees this as unlikely, given he does not believe an internal LiDAR system could be ready for 2025 production and if Mobileye had an internal solution ready to go they would not have announced a deal with Luminar, Richard tells investors.

While Mobileye's parent Intel (INTC) is developing LiDAR, Richard believes the company's SiP group has "other priorities," he added.