HYLN - Hyliion: Upgrading On Vastly Reduced Cash Burn And Share Buyback Announcement
2024-01-26 11:21:47 ET
Summary
- Hyliion has shifted its focus from electric powertrains to its recently acquired, fuel-agnostic KARNO power generator solution with early deployments expected towards the end of the year.
- While management claims a number of advantages, the KARNO generator is likely to face stiff competition from conventional and fuel cell-powered solutions.
- After a steep sell-off following the announcement, the company's shares have almost doubled over the past month due to vastly increased runway and a surprise $20 million share buyback authorization.
- Even after the recent rally, Hyliion's enterprise value is still 25% below the company's projected year-end cash position with the market assigning a negative value to the new core business right now.
- With sufficient liquidity to fund the business for many years to come and repurchases likely to provide additional support to the stock, I am upgrading the company's shares from "Sell" to "Hold".
I have discussed Hyliion Holdings Corp. ( HYLN ) previously, so investors should view this as an update to my earlier coverage of the company. ...
Hyliion: Upgrading On Vastly Reduced Cash Burn And Share Buyback Announcement