Canoo (NASDAQ:GOEV) stock is in focus following an initiation of coverage from Wedbush. Analyst Dan Ives provided an “outperform” rating and a price target of $4 for shares, which reflects significant upside of 1,804% compared to yesterday’s closing price of 21 cents. The price target is also the highest among all Wall Street analysts, beating out the previous high target of $3.
Ives first acknowledges Canoo’s accomplishments, such as its partnership with Walmart (NYSE:WMT), a $3 billion order book and $750 million in committed orders. The analyst also highlights the potential trajectory of the last-mile delivery transportation market, which is expected to grow at a compound annual growth rate (CAGR) of 35% through 2040. In 2030, this market is estimated to be valued at approximately $425 billion.
“We believe that the current climate is favorable for Canoo at this point as we are in the early innings of this $5 trillion market EV opportunity over the next decade with the auto industry […] going through one of the biggest transformations not seen since the 1950s,” said Ives.
GOEV Stock: Wedbush Initiates Coverage With a Price Target of $4
Ives also has confidence in Canoo’s expertise, pointing out that CEO Tony Aquila and the rest of the management team’s experience gives the company a competitive advantage.
Canoo is currently focused on increasing the production of its lifestyle delivery vehicle (LDV). The Class 1 LDV carries a range of 217 miles with a max payload of 1,423 pounds, while the Class 2 LDV has a range of 200-plus miles and a max payload of 1,624 lbs.
In July 2022, Walmart announced that it had placed a purchase order for 4,500 LDVs with the option to purchase an additional 10,000 LDVs.
Ives is highly ranked on TipRanks, which tracks analysts’ ratings and the performances of their covered stocks. Ives is ranked at 232 out of 8,647 analysts with a 58% success rate and an average one-year return of 12.9%.
GOEV stock has an average price target of $1.61 among five analysts with coverage, implying upside of 666%.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
