BTIG Starts The Shyft Group (SHYF) at Buy

BTIG analyst Gregory Lewis initiates coverage on The Shyft Group (NASDAQ: SHYF) with a Buy rating and a price target of $40.00.

The analyst comments "Shyft Group is a US-based commercial vehicle OEM and service company focused on the work truck (Class 1-7) and specialty vehicle market in North America (NAM). Additionally, unlike many of the upstart EV OEMs that have surfaced over the last few years, SHYF through its various portfolio of brands has been building vehicles for almost five decades. SHYF has two primary business lines: 1) Fleet Vehicles and Services (FVS), which is led by Utilimaster, a leader in the legacy (but still growing) internal combustion engine (ICE) commercial vehicle work truck market (think cargo and delivery vans and trucks); and 2) Specialty Vehicles (SV), which builds chassis for motorhomes and offers contract manufacturing services and will soon include Blue Arc, SHYF's new EV class 3 delivery van that is scheduled to start production later this year. Additionally, SHYF has cobbled together (potential for more expansion) a national upfitting and aftermarket parts and services business. Bottom line: we think SHYF is well positioned over the long term to leverage its existing legacy ICE business (which is still growing, by the way) and cash flows into the nascent commercial EV market. And while there is still a lot of work to do on both manufacturing and sales for Blue Arc longer-term, as commercial EV adoption picks up margins should increase. We initiate with a Buy Rating and $40 PT."

For an analyst ratings summary and ratings history on The Shyft Group click here. For more ratings news on The Shyft Group click here.

Shares of The Shyft Group closed at $29.50 yesterday.

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