Investors React Negatively to Canoo’s Disappointing 2024 Revenue Guidance
Canoo Inc GOEV shares witnessed a sharp decline in early trading following the company’s release of a lackluster 2024 revenue outlook. Adding to the tumult, Canoo had implemented a 1-for-23 reverse stock split earlier in March.
H.C. Wainwright & Co. reported that Canoo was strategically focusing on scaling its manufacturing operations cautiously, fortifying its supply chain to withstand market fluctuations.
Analyzing Canoo: Despite the setbacks, analyst Amit Dayal expressed confidence in Canoo’s prospects by maintaining a Buy rating and upping the price target to $7 from $3.
The Canoo Outlook: Dayal revealed that Canoo reported quarterly revenues of $0.4 million, with an adjusted EBITDA loss of $54.0 million, a slight improvement from the $60.7 million loss recorded in the same quarter the previous year.
Dayal elaborated on Canoo’s 2024 revenue projection of $50 million to $100 million, estimating a production volume of approximately 1,000 to 2,000 vehicles for the year. However, by mid-2025, Dayal speculated that management aimed to achieve quarterly production levels of 4,000 to 5,000 units.
Dayal emphasized that recent strategic moves by Canoo positioned the company for sustained profitability in the foreseeable future. The revised price target reflects the impact of the recent stock split, investments from international institutional investors, and progress made against the Pre-Paid Advance Agreement (PPA).
Canoo Stock Movement: Canoo’s shares plummeted by 26.64% to $2.84 during Tuesday’s trading session.
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Photo: Courtesy Canoo