Canoo Inc
GOEV shares faced a rough start in early trading on Tuesday post the company’s lackluster 2024 revenue forecast. The plunge came shortly after the company’s announcement of a 1-for-23 reverse stock split in early March.
H.C. Wainwright & Co noted that the company was adopting a cautious strategy to expand its manufacturing capabilities while fortifying its supply chain.
The Canoo Analyst: Despite the gloomy outlook, analyst Amit Dayal remained optimistic, maintaining a Buy rating on Canoo and revising the price target from $3 to $7.
The Canoo Perspective: Dayal highlighted that the company reported fourth-quarter revenues of $0.4 million, with an adjusted EBITDA loss of $54.0 million, a modest improvement from the $60.7 million loss in the corresponding period the prior year.
“The company’s forecasted revenue of $50[M]-100M for 2024 indicates a production range of approximately 1,000-2,000 vehicles throughout the year; the management’s goal is to achieve quarterly production of 4,000-5,000 vehicles by mid-2025,” the analyst’s note revealed. “Canoo has strategically positioned itself for sustained profitability in the long run over the past few months,” Dayal added.
The revised price target acknowledged the impact of the reverse stock split, investments from foreign strategic institutional investors, and progress related to the Pre-Paid Advance Agreement (PPA), as noted by Dayal.
GOEV Stock Performance: The market response was evident, with Canoo’s shares tumbling by 26.64% to $2.84 at the time of publication on Tuesday.
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Photo: Courtesy Canoo
