Shares of the EV (electric vehicle) startup Canoo (NASDAQ:GOEV) are down about 78% year-to-date. However, Wall Street analysts are bullish about this penny stock (learn more about penny stocks here). Moreover, analysts’ average price target suggests massive upside potential in GOEV stock from current levels.
Analysts’ optimistic outlook is based on the company’s large order book, expected production ramp-up, and potential to deliver solid revenues in the coming years. It’s worth highlighting that Canoo had a $3 billion order book at the end of the second quarter. Moreover, 70% of that is from commercial customers. The strong order book will drive the company’s profits in the near future.
Let’s delve deeper.
Is GOEV Stock a Good Buy?
Alliance Global Partners, which initiated coverage of Canoo stock with a Buy rating near the end of August 2023, provided a price target of $1.55 per share. This reflects a significant upside potential of 467.35% from current levels. Alliance Global Partners expects the company to benefit from increased production, a substantial order book, and a unique modular design.
Meanwhile, Amit Dayal of H.C. Wainwright reiterated a Buy recommendation on GOEV stock following the company’s Q2 result announcement on August 14. The five-star analyst expects Canoo’s revenues to increase from $1.2 billion in 2024 to $9.8 billion in 2033. This reflects a CAGR of over 26%. Furthermore, the analyst expects GOEV’s gross margin to improve significantly in the coming years. Impressively, Dayal has a price target of $10 on Canoo stock, which represents a massive upside potential of 3,560.32% from current levels.
Overall, Canoo stock has received three unanimous Buy recommendations for a Strong Buy consensus rating. In addition, the average GOEV stock price target of $4.52 implies a 1,554.47% upside potential from current levels.
Bottom Line
Canoo’s solid order book, focus on ramping production, and sales strategy focused on commercial customers augur well for growth. This is reflected in the analysts’ Strong Buy consensus rating. While GOEV stock offers notable upside potential (based on analysts’ average price target), investors can use TipRanks’ penny stock screener to find more such compelling penny stocks.
