Xos (XOS – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Donovan Schafer CFA from Northland Securities upgraded the rating on the stock to a Buy and gave it a $0.75 price target.
Donovan Schafer CFA has issued a Buy rating for the Xos’s stock (ticker: XOS). This rating is based on a combination of factors that include the company’s robust third-quarter performance and a promising forecast for the fourth quarter. He acknowledges the challenges that Xos faces in terms of funding near-term losses and working capital but believes that the company is at a turning point with regard to its operations and market demand, particularly for stepvan demand in California and other parts of the U.S. Some of this demand is regulatory-driven, but Xos is noted for its strategic focus and continuous improvement in this area.
Schafer also emphasizes that Xos is in a unique position at this time due to the regulatory environment. The Advanced Clean Fleets (ACF) rule, finalized in October, mandates that fleets convert 10% of their stepvan fleets to Zero Emission Vehicles (ZEV) over the next 13 months. Xos is one of the few companies, if not the only one, positioned to meet these requirements. This puts Xos in a position to negotiate favorable terms that can help finance its operations and working capital. Furthermore, Xos’s shift in focus to larger national fleet operators seems to be paying off in a number of ways, including compliance with California’s ACF rule, better charging infrastructure, predictable orders, and financial resilience. These advantages create a situation where Xos can reduce sales headcount and benefit more from customer demand.
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Xos (XOS) Company Description:
NextGen Acquisition Corp is a blank check company.
Read More on XOS:
- Xos announces Penske Truck Leasing has added its 100% battery-electric trucks
- Penske Truck Leasing Adds Xos Stepvan to its Electric Fleet Offering
- Xos, Inc. Announces Third Quarter 2023 Earnings Release Date and Conference Call
- Xos delivers 105 units to end customers in Q3
- Xos Achieves Largest Quarter with Profitable Deliveries to National Fleet Customers
