Written by Cláudio Afonso | LinkedIn | X
Alliance Global Partners analyst C. K. Poe Fratt released a new research note late Tuesday cutting the price target on the EV stock Canoo after the company announced the resignation of its CFO Greg Ethridge and the General Counsel Hector Ruiz.
Additionally, the startup disclosed in an SEC filing on Tuesday that it has entered into a $12 million secured revolving credit facility with AFV Management Advisors, LLC, an entity founded by the company’s CEO Tony Aquila.
The analyst lowered the firm’s price target on Canoo to $5 from $14 while maintaining a Buy rating on the shares, as initially reported by The Fly. The firm began Canoo coverage in August 2023 with a Buy rating.
The company updated its model after Canoo disclosed it had secured a credit revolver of up to $12 million, announced the resignation of its CFO and General Counsel, and furloughed 30 workers in Oklahoma.
Canoo shares are trading flat in pre-market trading.
The changes were described as part of a broader strategy aimed at supply chain alignment and future growth. However, no cost-saving estimates were provided, and an analyst noted that the impact on the timing of Canoo’s production ramp is likely to be negative.
Canoo shares closed 10.54% higher at $0.43 on Tuesday after having declined 50% between last week and Monday.
Last week, the company announced it had furloughed 23% of the workforce, equivalent to 30 employees, at its Oklahoma plant as part of what it described as a “broader realignment of North American operations.”
Canoo shares closed 10.54% higher at $0.43 on Tuesday after having declined 50% between last week and Monday.
In addition to the furlough, employees were informed that health insurance coverage would end effective October 31, the day they were notified. However, on Saturday, Canoo issued a new statement extending health benefits for furloughed workers through November 30, responding to concerns raised by affected employees.
In a new statement, the EV maker said on Saturday it would extend healthcare benefits for furloughed employees from October 31 to November 30, responding to feedback from affected workers.
Written by Cláudio Afonso | LinkedIn | X
