Stock Plummets on Gloomy Guidance
Canoo Inc GOEV shares were plummeting in early trading on Tuesday following the company’s discouraging 2024 revenue forecast. The announcement came on the heels of a 1-for-23 reverse stock split in early March.
Analyst Stays Positive Amid Investor Panic
Despite the market reaction, Amit Dayal, an analyst at H.C. Wainwright & Co., has decided to maintain a Buy rating for Canoo. He even raised the price target from $3 to $7, showcasing his unwavering optimism in the company’s future.
Revenue Outlook and Strategic Moves
The Canoo Analyst: Dayal highlighted that the company reported fourth-quarter revenues of $0.4 million, with an adjusted EBITDA loss of $54.0 million. While this was an improvement from the year-ago quarter’s loss of $60.7 million, investors seemed unimpressed by the figures.
The Canoo Thesis: In his note, Dayal pointed out that Canoo’s 2024 revenue guidance of $50 million to $100 million indicates a production target of 1,000 to 2,000 vehicles for the year. Looking ahead, he believes the company aims to achieve quarterly production levels of 4,000 to 5,000 by mid-2025, emphasizing a long-term vision for sustainable growth.
Investor Confidence Shaken
The recent drop in Canoo’s stock price reflects a 26.64% decline, with shares trading at $2.84 at the time of publication on Tuesday. This significant fall underscores the disappointment among investors regarding the company’s projections and strategic direction.
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Photo: Courtesy Canoo