UPDATE: B.Riley Starts Tritium (DCFC) at Buy

B.Riley analyst Christopher Souther initiates coverage on Tritium (NASDAQ: DCFC) with a Buy rating and a price target of $12.00.

The analyst comments "We are initiating coverage of Tritium (DCFC) with a Buy rating and a $12 price target given our confidence in the company’s ability to meaningfully penetrate the DC fast-charging market with its pure-play strategy, which will likely be one of the fastest-growing market segments in the near and intermediate term. We believe that Tritium is well positioned with key customers across public network operators, fleets, utilities, and heavy-duty/industrial vehicles, providing strong visibility on revenue growth. New customer wins have been driven by Tritium’s differentiated factors, including its products’ lower cost of ownership, its liquid-cooled technology, and its new modular scalable charging (MSC) platform. As Tritium's installed fleet grows, we believe revenue from recurring software and service is likely to scale to become meaningfully accretive to margins. We see the company's hardware sales model as providing better operating leverage than peers with less-focused business models and higher cost structures."

For an analyst ratings summary and ratings history on Tritium click here. For more ratings news on Tritium click here.

Shares of Tritium closed at $5.77 yesterday.

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