Written by Cláudio Afonso | LinkedIn | X
Roth MKM analyst Craig Irwin reduced on Thursday the firm’s price target on Canoo from $3 to $1.50 while maintaining a Neutral rating on the stock.
Based on Wednesday’s closing price, the new price target implies an upside potential of 6.4%.
In a new research note, the firm highlighted Canoo’s second-quarter progress, citing tight cost controls and significant supplier engagement as the company prepares for a late 2024 start to commercial production.
However, the firm lowered its estimates due to the anticipated delay in production commencement.
The analyst also emphasized the need for greater visibility on long-term revenue growth and potential dilution before considering a more constructive stance on the stock, as initially reported by The Fly.
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Earlier today, also Alliance Global Partners adjusted its price target on the stock, lowering it from $18.50 to $14.
Taking into account the reverse stock split executed by Canoo in March, the adjusted price target now stands at $0.61 per share. This new target suggests a significant downside potential of approximately 56% from Wednesday’s closing price of $1.41.
Canoo reported on Wednesday that it expects an Adjusted EBITDA loss ranging between $120 million and $140 million for the second half of 2024.
Despite reporting a record revenue of $605,000, the company indicated that it is “in advanced stages of discussions with other sources of capital” to address its financial needs.
However, the chief executive Tony Aquila, said in a statement the results represent “good progress” with customers adding that they “drove more than 34,000 recent real world, industrial use miles”.
The stock reached a record low at $1.22 per share in March reflecting concerns over the lack of progress in the pilot programs announced over the last two years.
Written by Cláudio Afonso | LinkedIn | X
