Canoo Inc (GOEV)

[Alvie]

"Wedbush Adjusts Canoo's Price Target to $5 From $4, Maintains Outperform Rating"

"Canoo Remains Cost Conscious Amid Capital Concerns, Wedbush Says
MT NEWSWIRES

1:40 PM ET 04/02/2024

01:40 PM EDT, 04/02/2024 (MT Newswires) -- Canoo (GOEV) has remained cost conscious amid concerns over its capital needs after the electric vehicles maker missed revenue expectations while beating consensus on the bottom line in Q4, Wedbush said in a report Tuesday.

"From a cost perspective, the company remains extremely cost conscious, lowering its overall R&D expense by 53% y/y while turning a corner to cautious expansion," Wedbush analysts, including Daniel Ives, said, adding that Canoo (GOEV) is also disciplined in its capital deployment approach by raising only the amounts of capital it needs for each milestone.

"We estimate the company needs to raise roughly $200 million to $250 million to navigate through this period and emerge in a stronger position into 2025 as this remains a key investor concern," the analysts said.

"We still remain positive in the long-term Canoo (GOEV) growth story, its key partnerships, and its supply chain strategy," they said.

Wedbush kept its outperform rating on Canoo (GOEV) while raising its price target to $5 from $4.