REE Automotive (REE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Thomas Boyes from TD Cowen remains neutral on the stock and has a $7.00 price target.
Thomas Boyes has assigned a Buy rating to REE Automotive largely due to the company’s demonstrated ability to generate demand growth and its detailed strategic plan looking forward to 2024. Despite missing estimates and recognizing the need for additional funding, REE Automotive has successfully doubled its order book value to $43 million and expanded its dealership network significantly. These advancements, alongside the company’s solid liquidity position with $101 million in reserves, of which $86 million is in cash and cash equivalents, provide a strong foundation for future growth.
Moreover, Boyes is optimistic about the firm’s roadmap for production and profitability, including the expected certification and immediate demo deliveries of the P7 platform by the end of 2023. Management’s forecast to achieve a bill of materials breakeven by the end of 2024, with EBITDA breakeven projected for the following year, further contributes to the positive outlook. Although the company will need to raise around $20 million for working capital to meet its production goals, Boyes is confident in the company’s ability to secure this funding, as evidenced by a recent $8 million investment from a major institutional investor under favorable terms.
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REE Automotive (REE) Company Description:
REE Automotive is an automotive technology leader that provides modular electric vehicle (EV) platforms. It enables original equipment manufacturers, delivery and logistics fleets, Mobility-as-a-Service providers, and autonomous drive companies in the build-out of any size or shape of EV or autonomous vehicle.
Read More on REE:
- REE Automotive Announces Third Quarter 2023 Financial Results
- REE Automotive, Ltd. Announces Date for Third Quarter 2023 Earnings Release and Conference Call
- Is REE a Buy, Before Earnings?
- REE Automotive Regains Compliance with Nasdaq Minimum Bid Price Requirement
- Ree Automotive regains compliance with Nasdaq minimum bid price requirement
