Written by Cláudio Afonso | [email protected] | LinkedIn | X
Stifel reaffirmed its Buy rating on Canoo shares on Thursday, while setting a $4.5 price target. The updated price target represents an upside potential of 50 percent based on Thursday’s closing price of $3 per share.
The firm emphasized Canoo‘s focus on last-mile delivery and fleet management aligns with burgeoning demand for innovative and sustainable transportation solutions, as stated in a new research note.
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Acknowledging the complexities of forecasting Canoo’s capital needs and potential dilution from future fundraising endeavors, the firm’s new price target is grounded on a valuation of 0.75 to 1.0 times projected 2026 revenues, factoring in a stock split — as initially reported by Investing.com.
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The firm believes the U.S. startup is well-positioned to address long-term demand, especially in last-mile delivery and fleet management sectors saying that, despite inherent uncertainties, Canoo’s strategic positioning and market potential continue to fuel optimism for future growth.
Earlier this week, the manufacturer started a tour in the United Kingdom to attend the Great British Fleet Show on April 17th, Bicester Heritage Scramble on April 21, and the Commercial Vehicle Show from April 23th until the 25th.
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Earlier this week, Benchmark analyst Michael Legg initiated coverage of Canoo shares with a Buy rating and $5 price target. 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.
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.
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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 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 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 | [email protected] | LinkedIn | X
