At some point within the first 60 minutes of trading on Monday, EzFill Holdings (NASDAQ:EZFL) shares soared by 78%. However, as the trading day progressed, the stock price retraced most of those gains.
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Yet, one Street analyst thinks this micro-cap stock has plenty of room to grow from here.
But first, what does this tech firm bring to the table?
Based in Miami, Florida, EzFill’s main product is a mobile app that allows customers to order and schedule fuel deliveries on-demand, simplifying the process and making it more convenient for consumers. The service reaches customers directly at their homes or places of work and the app also provides features such as tank monitoring and payment processing to streamline the whole process.
It looks like demand is growing. In the company’s recent Q1 report, revenue climbed by 123.5% year-over-year to $5.23 million. And more recently, following days of historic rainfall in Miami-Dade and Broward County that affected fuel distribution in parts of South Florida, the company reported that downloads and new users of its mobile fueling app surged by more than 200%.
In the recent Q1 press release, the company stated that its current line-up of 40 trucks offers “more than enough capacity” for growth over the near-term.
Covering EzFill for investment firm Maxim, analyst Tate Sullivan writes: “We believe EZFL will now focus on reducing losses for its 40 trucks by increasing the amount of fuel each of these trucks delivers per day. More fuel deliveries per truck should absorb daily driver costs, which should serve to generate consistent gross profit.”
Sullivan also sees “meaningful revenue growth” in the cards, as he anticipates the company will nab more fleet agreements and experience growing acceptance of on-demand fuel delivery services. “Furthermore,” the 5-star analyst summed up, “we expect the total addressable market to grow regardless of gasoline price fluctuations as electric vehicle (EV) adoption grows and as customers travel longer distances.”
All told, Sullivan has a Buy rating for the shares, backed by a $6 price target. This makes room for one-year growth of 137%. (To watch Sullivan’s track record, click here)
You can file the stock firmly in the ‘under the radar’ camp, as Sullivan aside, there are currently no other analysts covering this name. (See EzFill stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
