Canoo ( NASDAQ: GOEV ) attracted more positive analyst attention on Friday as Stifel analyst J. Bruce Chan announced new coverage of the stock with a bullish rating.
He explained that the company’s focus on “the most profitable automotive market segments” in compact SUVs, pick-ups, and last-mile delivery make the stock a strong growth story. Additionally, its broad focus separates it from a crowded EV field, in Chan’s view.
“Notably different from peers and entrenched OEMs, Canoo is attempting to capture value across the entire vehicle lifecycle,” he wrote. “We view the stock favorably, given a seasoned management team communicating a clear focus on high-growth areas, in our view.”
Chan added that the company’s deal with Walmart ( WMT ) offers a significant boost, with more commercial customers likely to come.
“The company’s strategy targets both the B2C and B2B markets through a direct sales model to retail consumers and commercial fleets,” he concluded. “Canoo's modular architecture and modular manufacturing strategy should yield lower cost relative to peers, as well as faster future
vehicle development that should allow the company to capture share at this critically early stage in the electric vehicle market, in our view.”
Chan assigned a $4 price target to the stock alongside a “Buy” rating. While shares have marked a notable bounce in recent days, shares remain significantly depressed from a 52-week peak of $13.35.
Read more on the details of Canoo’s partnership with Walmart .
For further details see:
Canoo called ‘compelling offering’ as Stifel initiates at ‘Buy’ rating