This beaten-down EV penny stock could rally 1800% in 2024 - Dan Ives

Wedbush analyst Daniel Ives sees a “golden opportunity” for one electric vehicle (EV) company, whose stock dropped nearly 80% last year.

Ives initiated research coverage on Canoo (NASDAQ: GOEV) with an Outperform rating and a $4 per share price target, which indicates an 1800% upside potential based on yesterday’s closing price of $0.21.

Canoo stock gained 9% in early Friday trade following this news.

Ives views Canoo as a distinctive player in the EV sector, emphasizing its position in the Class 1 vehicle market with key partnerships and substantial orders.

The company's focus on the lifestyle delivery vehicle (LDV) aligns with a “golden” market opportunity in last-mile delivery.

“With the last-mile delivery transportation market estimated to reach ~$425 billion by 2030 in just the USA, the market is expected to grow at a 35% CAGR through 2040 as demand for electric vehicles increases,” Ives said in an initiation note.

Despite noting low cash as a risk, Ives sees a clear plan for cash flow improvement through funding in the current quarter.

The growing demand for EVs and Canoo's strategic positioning in the evolving auto industry contribute to the positive outlook, with Ives citing a favorable climate for Canoo in the early stages of a $5 trillion EV market opportunity over the next decade.

“Although in the infancy stages of its growth story, we believe it is important to keep an eye on this EV manufacturer chipping away at market share as this growth story unfolds,” Ives added.

By Senad Karaahmetovic

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