In a report released yesterday, George Gianarikas from Canaccord Genuity maintained a Hold rating on Lion Electric Company (LEV – Research Report), with a price target of $2.50.
George Gianarikas has given his Hold rating due to a combination of factors. The Lion Electric Company showed promising growth in the last quarter, with a 96% year-on-year revenue increase and a gross margin of nearly 7%. Despite a decrease in the order book for the quarter, the overall performance was commendable. However, due to near-term uncertainty, Gianarikas maintains a Hold rating, even though the price target implies potential upside.
The Lion Electric Company strengthened its balance sheet recently and seems to be on the cusp of a profitability breakthrough with expectations of positive EBITDA and free cash flow in the near future. Although the third-quarter results were robust, falling short of the delivery estimate and a decrease in the order book influenced the Hold rating. The company’s decision to delay the commercial production of a school bus model and changes in subsidy-related timelines were among the reasons for the quarterly decrease in the order book. Despite these factors, management is confident that this will grow over time.
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Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LEV in relation to earlier this year.
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Lion Electric Company (LEV) Company Description:
Northern Genesis Acquisition Corp is a blank check company.
Read More on LEV:
- Lion Electric reports Q3 EPS (9c), consensus (9c)
- LION ELECTRIC POSTS RECORD REVENUE AND GROSS PROFIT FOR THE THIRD QUARTER OF 2023
- Lion Electric price target lowered to $3 from $4 at B. Riley
- Lion Electric receives conditional purchase order from Highland
- Lion Electric CFO Nicolas Brunet switches roles, Richard Coulombe to succeed
