Microvast: Decent Quarter, Solid Outlook (Rating Upgrade)

2025-04-02 11:45:06 ET

Summary

• Lithium-ion battery manufacturer Microvast Holdings, Inc. reported better-than-expected fourth quarter and full-year 2024 results.
• Revenues and gross margins increased to new all-time highs and backlog was up by an impressive 45% on a sequential basis.
• Management guided for persistent growth amid solid gross margins this year.
• While the company has made decent progress in recent quarters, the improvement appears to be well reflected in Microvast's increased valuation.
• While I am raising my rating from "Sell" to "Hold," Microvast would have to continue outperforming expectations for me to get more constructive on the stock.

Note:

I have covered Microvast Holdings, Inc. or "Microvast" (NASDAQ: MVST , NASDAQ: MVSTW ) previously, so investors should view this as an update to my earlier article on the company. ...

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