Amit Dayal, an analyst from H.C. Wainwright, maintained the Buy rating on Canoo (GOEV – Research Report). The associated price target is $3.00.
Amit Dayal from H.C. Wainwright has assigned a Buy rating to Canoo’s stock (GOEV) based on several key factors. He has adjusted his expectations about the company’s near-term vehicle delivery, reducing the 2024 estimate from 25,000 to 3,000 vehicles. This adjustment is largely due to the company’s management’s decision to begin deliveries to primary customers late in 2023 at a slower, more fiscally sustainable pace. This approach aligns with the company’s effort to minimize operating expenses through 2023 while managing initial production and delivery against their existing order book of 18,000 units.
Despite the downward adjustment in delivery estimates and the company’s unprofitability in 2024, Dayal maintains his Buy rating. He projects a significant increase in the company’s revenue from $148M in 2024 to $8.6B in 2033, representing a nine-year compound annual growth rate (CAGR) of 57.1%. Furthermore, he expects the gross margins to improve from negative levels in 2023 to over 15.0% by 2026, and a CAGR of 6.2% for operating expenses from 2024 to 2033. His $3.00 price target is derived from a discounted cash flow (DCF) analysis, factoring in a 25% execution risk to the company’s weighted average cost of capital (WACC).
Dayal covers the Industrials sector, focusing on stocks such as Plug Power, Flux Power Holdings, and Amprius Technologies Inc. According to TipRanks, Dayal has an average return of 9.6% and a 30.94% success rate on recommended stocks.
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Canoo (GOEV) Company Description:
Hennessy Capital Acquisition Corp. IV operates as a blank check company. It has no operations nor does it currently engage in any business activities generating revenues. The company was founded in August 2018 and is headquartered in Wilson, WY.
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