Canoo Inc GOEV witnessed a plunge in its shares during early trading on Tuesday following the company’s disappointing 2024 revenue forecast. Previously, in early March, Canoo had implemented a 1-for-23 reverse stock split.
H.C. Wainwright & Co. highlighted the company’s cautious strategy to expand its manufacturing capabilities while fortifying its supply chain resilience.
The Canoo Analyst: Despite the setback, analyst Amit Dayal remained bullish on Canoo, upholding a Buy rating and revising the price target from $3 to $7.
The Canoo Outlook: Dayal noted that Canoo reported fourth-quarter revenues of $0.4 million, with an adjusted EBITDA loss of $54.0 million compared to $60.7 million in the corresponding period the previous year.
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Dayal further elaborated, “The company’s anticipation of achieving $50[M]-100M in revenue for 2024 suggests the production of approximately 1,000-2,000 vehicles throughout the year, with the management eyeing a quarterly production level of 4,000-5,000 by mid-2025. Recent strategic decisions have aligned Canoo for sustainable profitability in the long run.”
The updated price target reflects the impact of the 1-for-23 reverse stock split, investments from international institutional investors, and Canoo’s progress on the Pre-Paid Advance Agreement (PPA).
Price Movement of GOEV: Canoo’s shares plummeted by 26.64% to $2.84 at the time of report publication on Tuesday.
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Image Source: Courtesy Canoo
