Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | X
Benchmark analyst Michael Legg initiated coverage on Wednesday of Canoo shares with a Buy rating and $5 price target.
On Tuesday morning, shares of electric vehicle (EV) manufacturer Canoo soared 18 percent to reach $2.93 per share, pushing its market capitalization to nearly $190 million. Based on the last closing price, the price target implies an upside potential of 70.65 percent.
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According to the analyst, Canoo has undergone significant changes since 2020, including the establishment of a new, “accomplished” management team and a strong emphasis on commercial fleet vehicles.
Additionally, the company has adopted a phased approach to capacity expansion. In the note, the firm highlights Canoo‘s impressive $3 billion sales pipeline, which encompasses $750 million in contracted orders.
In early March, the EV startup executed a 1 for 23 reverse stock split with the goal of appealing to a wider range of investors.
Canoo‘s CFO Greg Ethridge was officially confirmed this Tuesday as a panelist for the discussion titled “Is There Really a Market for Electrifying Everything?” at the Electrify Expo in California scheduled for the end of May.
Canoo recently announced a partnership with Red Sea Global to conduct trials on three models, namely Canoo‘s Lifestyle Vehicle (LV), Lifestyle Delivery Vehicle (LDV) 190, and the Bulldog pickup truck. These trials aim to facilitate transportation of visitors between Saudi Arabia’s international airport, resorts, and excursions — the company said in a statement.
In 2024, Canoo expects annual revenue in the range of $50 million to $100 million, a wide range that stands below the analyst consensus of $152.52 million.
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Last week, the company inked a deal with Jazeera Paints for a electric vehicle deal in Saudi Arabia. Jazeera Paints will initially purchase 20 EVs (LDV 130 and LDV 190 ), with the potential for 160 more, marking the entrance of Canoo into the $30 billion Saudi EV market.
Recently, Canoo published its Q4 2023 earnings report, disclosing a net loss of $29.0 million for the quarter and a cumulative loss of $302.6 million for the year.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | X
