GreenPower (GP) delivered fiscal first-quarter (ended June 30) revenue that fell short of Wall Street expectations. While revenue was up 17% year-over-year to $2.66 million, it was down from $4.6 million expected by the Street.
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According to GreenPower CEO Fraser Atkinson, GreenPower experienced an increase in pipeline activity, leading to new orders. The company ended up delivering 14 EV Stars to Los-Angeles based Green Commuter. Additionally, it delivered one EV Star to Harbour Air and another to the Learning Disabilities Society of Greater Vancouver.
GreenPower has tripled its inventory levels and now has more than 300 vehicles completed or in various stages of development. The company said that an uptick in sales in the second half of the year should bolster its top line.
Atkinson stated, “We are on track to achieving our goal of attaining positive quarterly cash flow by the end of this calendar year.”
GreenPower ended the quarter with $18.8 million worth of inventory, up from $12.5 million as of March 31, 2021. (See GreenPower stock charts on TipRanks)
Following the fiscal first-quarter report, BTIG analyst Gregory Lewis has reiterated a Buy rating on the stock but lowered his price target to $35 from $40, implying 129.36% upside potential to current levels.
The analyst expects the company’s BEAST buses sales to recover by the mid-single-digit range going forward.
Lewis stated, “The production ramp has seen inventory reach roughly 55 EV Stars which is in-line with management’s goal of maintaining 1-2 months of production in inventory (we note as production ramps to ~100 vehicles/month, management expects vehicle inventory to move towards ~1 month, given the lead times in delivering vehicles to customers).”
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average GreenPower price target of $33 implies 116.27% upside potential to current levels.
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