EVLV - Evolv: Worth Exploring At These Levels

2024-04-16 15:00:01 ET

Summary

• EVLV has eroded a great deal of investor wealth since it got listed in July 2021 (down by 60%) but we still see some merit in this business.
• EVLV's AI-based solutions offer an edge where threat levels are on the rise and the need for cost-competitive alternatives are few and far between.
• EVLV is not just seeing traction in the market place, the changing texture of its topline towards more subscription-based sales should also reflect well on the cost base.
• We like the risk-reward on the charts, and given the forward topline growth on offer, the stock does not look expensive.

Introduction

Evolv Technologies Holdings, Inc. ( EVLV ), a micro-cap play on AI-based weapon detection, hasn’t done a great deal of good for its long-standing shareholders since it got listed back in July 2021 . For context, whilst other micro-caps have managed to generate returns of nearly 29% since EVLV went public, our focus stock has lost nearly 60% of its value during that time....

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