ELMS +.08 to 8.89 - BTIG initiates coverage with a $15 price target -
briefing -
Electric Last Mile Solutions: Electrifying the Delivery Van Market. Initiating with a Buy and $15 PT - BTIG Research (8.81)
BTIG's Gregory Lewis notes, "Electric Last Mile Solutions (ELMS) completed its merger with Forum Merger Corporation III (FIII, Not Rated) in June. The merger included a $130M PIPE (private investment in public equity), which provided pro-forma cash of ~ $295M for management to position itself as an early mover in the electric vehicle (EV) commercial van market (Class 1-2 vehicles) with production expected to start ramping in 4Q21. ELMS is also expected to start producing its Urban Utility (Class 3) truck in late 2022 with the Company planning to take pre-orders for the truck this summer. Key to ELMS success will be 1) the successful re-tooling and start-up of its facility in Indiana (last produced cars in 2019), 2) its ability to leverage its strategic relationship with Wuling Motors (WLMTF, Not Rated), which is a Chinese based auto manufacturer and parts supplier with light-duty electric vans already on the road in Asia, and 3) its ability to deliver a cost-competitive battery electric vehicle (BEV) as it looks to carve out a slice of the roughly 500K annual US delivery van sales (ELMS is targeting ~35K vehicles in 2023)."
