Carbon Revolution Plc. (CREV) PT Lowered to $39 at Craig-Hallum

Craig-Hallum analyst Eric Stine lowered the price target on Carbon Revolution Plc. (NASDAQ: CREV) to $39.00 (from $84.00) while maintaining a Buy rating.

The analyst comments "Carbon Revolution’s mixed 1H-FY24 results were a microcosm of its current reality. Illustrating a strong commercial environment, CREV’s revenue was ahead of expectations, its revenue in 1H-FY24 almost exceeded all of FY23, its backlog stands at $700M+, 18 OEM programs have been added to date, and it has a growing OEM pipeline for ICE, EV, and hybrid vehicles as it ramps its Mega-line production capacity. On the other hand, CREV’s EBITDA/EPS were below expectations from added costs related to its Mega-line and $12.1M in transaction and NASDAQ listing costs, it guided 3Q down Q/Q (seasonality), and its near-term liquidity is top of mind given modest unrestricted cash and options to rectify the situation in process. The variability of quarter-to-quarter results and uncertainty as to the startup of large OEM programs is due to CREV being at the early stages of penetrating an expanding market opportunity for its proprietary carbon wheels. We expect CREV to add to Ford, GM, Ferrari, Renault, and JLR going forward and maintain our Buy rating."

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