Canoo (NASDAQ: GOEV) stock surged over 13% in the extended trading Friday post-Wedbush coverage.
Dan Ives, the analyst at Wedbush, has issued a bullish “outperform” rating to the stock with a $4 price target. This target represents a substantial upside of 1,804% compared to the closing price of 23 cents on Friday. This price target tops all Wall Street estimates, including the previous high target of $3.
Ives initially recognized Canoo’s achievements, including collaboration with Walmart (NYSE: WMT), a $3 billion order book, and $750 million in confirmed orders. He also highlighted the explosive growth potential in the last-mile delivery transportation market, forecasting a Compound Annual Growth Rate (CAGR) of 35% until 2040. This market is expected to value around $425 billion by 2030.
Ives expressed optimism, stating,
“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.”
Ives also expressed confidence in Canoo’s leadership, particularly lauding the experience of CEO Tony Aquila and the management team as a significant competitive advantage for the company.
The current focus of Canoo (NASDAQ: GOEV) centers on ramping up the production of its lifestyle delivery vehicle (LDV). The Class 1 LDV boasts a range of 217 miles with a max payload of 1,423 pounds, while the Class 2 LDV offers a range of 200-plus miles and a max payload of 1,624 lbs.
In July 2022, Walmart announced a monumental purchase order for 4,500 LDVs, with an option to acquire an additional 10,000 units.
Ives holds a high position on TipRanks, a platform that tracks analysts’ ratings and stock performance. He is positioned at 232 out of 8,647 analysts, with a 58% success rate and an average one-year return of 12.9%.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
