Canoo Inc GOEV shares were tanking in early trading on Tuesday after the company issued weak 2024 revenue guidance. In early March, the company had announced a 1-for-23 reverse stock split.
The company was following a “prudent” approach to scale its manufacturing while building resiliency in its supply chain, according to H.C. Wainwright & Co.
The Canoo Analyst: Amit Dayal maintained a Buy rating for Canoo while raising the price target from $3 to $7.
The Canoo Thesis: The company reported its fourth-quarter revenues at $0.4 million, with an adjusted EBITDA loss of $54.0 million, versus $60.7 million in the year-ago quarter, Dayal said in a note.
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“The company’s 2024 revenue guidance of $50[M]-100M implies production of roughly 1,000-2,000 vehicles during the year; we believe management is targeting quarterly production levels of 4,000-5,000 by mid-2025,” the analyst wrote. “During the last few months, the company has taken steps that position the company for long-term profitable execution,” he added.
The change in price target reflects the 1-for-23 reverse stock split, investments from foreign strategic institutional investors, and “other advances against the Pre-Paid Advance Agreement (PPA),” Dayal further stated.
GOEV Price Action: Shares of Canoo had declined by 26.64% to $2.84 at the time of publication on Tuesday.
Photo: Courtesy Canoo
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