On Friday, Roth/MKM initiated coverage on Ree Automotive Holding Inc. (NASDAQ: REE) stock with a Buy rating and set a price target of $14.00.
The firm's analysis highlights the company's innovative technology, the REEcorner, which is designed to enhance the adoption of x-by-wire and electric drivetrain technologies in medium-duty trucking markets, covering Class 3-5 trucks.
The technology developed by Ree Automotive is praised for its ability to bring cost efficiencies, format flexibility, and improved safety to the trucking industry.
According to Roth/MKM, this positions Ree Automotive to tap into billion-dollar markets despite currently being valued as a sub-$100 million microcap stock.
The firm anticipates that the second half of 2024 will bring significant catalysts that could confirm customer interest and adoption of Ree Automotive's technology.
These catalysts include expected customer orders, deliveries, and operator feedback, which Roth/MKM believes will serve as key points of validation for the company's market potential and technological advancements.
Ree Automotive's shares are seen as having considerable upside potential. The firm's endorsement is based on the company's strategic positioning to serve large-scale markets with its advanced vehicle technology.
The $14.00 price target set by Roth/MKM suggests a strong confidence in Ree Automotive's future performance and market penetration.
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