Written by Cláudio Afonso | LinkedIn | X
Roth Capital/MKM analyst Craig Irwin lowered on Wednesday the price target on Canoo shares from $4.00 to $3.00 while maintaining a Neutral rating. The price target adjustment follows the earnings results reported by the EV start-up on Tuesday afternoon.
“Canoo reported 1Q 2024 progress with the management team focusing on customer development, preparations for the production ramp at the Oklahoma facility, and market expansion. Cash use reflected discipline coming in at ($52m) down from ($81m) in 4Q23 and ($86m) in the year-ago quarter,” the analyst noted.
Irwin expects impressive deliveries in the second half of the year after the $1.6 billion investment.
“The ~$1.6 billion invested in the platform to-date positions Canoo well to deliver a positive real-world customer experience, in our view, where we expect an impressive 2H24 deliveries trajectory,” he said.
Canoo published on Tuesday its first-quarter earnings reporting an adjusted Net Loss Per Share of $1.13, a 34.6 percent improvement from $1.73 per share in the last quarter of 2023. In a statement, the CEO Tony Aquila said the company “prepares for step-level manufacturing”.
For the full-year outlook, the company stated that it is “unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA to net loss”.
Canoo mentions that “certain material reconciling items, such as depreciation and amortization and interest expense cannot be estimated due to factors outside of the Company’s control and could have a material impact on the reported results”.
“We continue to execute on our strategy of acquiring deeply discounted long-lead time assets as we prepare for step level manufacturing,” he added.
Last month, Stifel analyst reaffirmed its Buy rating on Canoo shares while setting a $4.5 price target.
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Canoo announced in early April 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 April, 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.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
