RF Lafferty sees 376% potential in Canoo stock, reiterates Buy rating after the Walmart deal

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter

On Thursday, RF Lafferty analyst Jaime Perez adjusted the firm’s price target on Canoo stock to $17 while reiterating a Buy rating on the shares. The analyst explained that the cut from $20 to $17 “reflects the increase in share count” and estimated the company’s revenue to be $700 million in 2023.

“The company announced an electric vehicle fleet purchase agreement with Walmart (WMT) for 10,000 vehicles with a contract value of approximately $300M”, Perez wrote. The analyst reduced Canoo‘s 2023 revenue by $100M to $700M to “reflect the low end of management’s guide of 14,000-16,000 deliveries for 2023”.

Based on the last closing price of $3.57, the new price target represents an upside potential of 376% on the stock. As of 11:23 EST, Canoo shares are trading 19.85% at $4.28 per share with a total daily volume of 67.67 million shares, only behind Exela Technologies stock.

Earlier this week, the EV maker signed a deal with Walmart to purchase 4,500 all-electric delivery vehicles, beginning with the Lifestyle Delivery Vehicle (LDV), with the option to purchase up to 10,000 units. The EV maker also confirmed the anticipation of starting production of the Lifestyle Delivery Vehicles beginning in Q4, 2022.

The LDV is expected to begin hitting the road as soon as next year and the companies plan to “kick-off advanced deliveries to refine and finalize vehicle configuration in the Dallas Fort Worth metroplex in the coming weeks,” the EV maker said.


Earlier today — but already after the note sent by RF Lafferty — Canoo said that has been selected by U.S. Army to supply an electric vehicle for analysis and demonstration supporting the U.S. military’s focus to “incorporate scalable and adaptable capabilities in operational and garrison environments”.

The announcement follows the previous selection by NASA for crew transportation vehicles to deliver astronauts to the Artemis launch site for lunar missions to establish the first long-term presence on the Moon.

Recently, the electric vehicle start-up filed for up to 48,043,111 shares offering by selling stockholders expecting to receive up to $250 million in aggregate gross proceeds.

On May 10, Canoo reported its Q1 2022 financial results announcing $600 million in accessible capital to optimize the company’s financial needs to start production. A total of $300 million in total funding via a committed PIPE from an existing shareholder and an equity purchase agreement with financing partner Yorkville Advisors and a $300 million universal shelf. At the time, the company disclosed having more than 17,500 preorders with a projected value of $750 million and a growing pipeline.

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter