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Canoo Has 'A Multi-Billion Revenue Opportunity,' Says Bullish Analyst

Published 17/04/2024, 17:13
Updated 17/04/2024, 18:40
© Reuters.  Canoo Has 'A Multi-Billion Revenue Opportunity,' Says Bullish Analyst

Benzinga - by priya@benzinga.com, .

Canoo Inc (NASDAQ:GOEV) operates in a segment where even the likes of Tesla Inc (NASDAQ:TSLA) are reporting weak delivery numbers.

The company has repositioned itself and the market appears to have "lost sight of the magnitude of the opportunity," according to Benchmark.

The Canoo Analyst: Michael Legg initiated coverage of Canoo with a Buy rating and a price target of $5.

The Canoo Thesis: The company faces limited competition in the Class 1 and Class 2 commercial fleet segment, as larger OEMs (original equipment manufacturers) are more focused on the consumer segment, Legg said in the initiation note.

Check out other analyst stock ratings.

Canoo has built a sales pipeline of $3 billion to date, which includes $750 million in contracted orders with clients like Walmart Inc (NYSE:WMT), the United States Postal Service and the US military, he added.

"According to Global Market Insights, the light duty truck market exceeds $15 trillion globally that should provide expanding market opportunities as the long-term benefits of EV's, combined with government incentives, fuel adoption," the analyst wrote.

"A low single-digit share of the forecasted EV light commercial market suggests a multi-billion revenue opportunity for GOEV by 2030," Legg added.

GOEV Price Action: Shares of Canoo were up 3.4% to $3.03 at the time of publication on Wednesday.

Now Read: Real Estate Stocks Fall As Mortgage Rates Rise To 4-Month Highs: ‘Inflation Is Proving Tougher To Bring Down’

Photo: Canoo

Latest Ratings for GOEV

Dec 2021Roth CapitalUpgradesNeutralBuy
Sep 2021HC Wainwright & Co.Initiates Coverage OnBuy
Aug 2021Roth CapitalMaintainsNeutral
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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