EV (electric vehicle) startup Canoo (NASDAQ:GOEV) revealed that it has acquired high-value EV equipment at a significant discount. The move will enable the company to scale production at its Oklahoma City facility. Following the positive development, this penny stock (learn more about penny stocks here) rose more than 6% in Monday’s regular trading but slipped about 9% in after-hours trading.
The acquisition included a range of manufacturing assets, encompassing robotics and control processing equipment, which will be used to construct vehicle cabins. Canoo secured these assets at a discount that was equivalent to over 80% of their estimated value.
The company is ramping up its manufacturing capabilities to fulfill additional customer deliveries in 2024. To achieve this, the company is using unconventional ways to obtain premium equipment at discounted prices. While Canoo is prudently managing its capital, let’s look at the Street’s forecast for its shares.
What is the Future of Canoo Stock?
Canoo’s CFO, Greg Ethridge, said the company has been diligently deploying capital to acquire critical manufacturing assets at reduced prices. Further, the company’s CAO (Chief Accounting Officer), Ramesh Murthy, added that Canoo’s focus on acquiring assets at significantly discounted prices enabled the firm to reduce capital expenditures and improve financial guidance by millions of dollars in 2023.
Overall, Wall Street is bullish about Canoo’s prospects. The stock has three unanimous Buy recommendations for a Strong Buy consensus rating. However, Canoo stock has dropped nearly 77% in one year. Thus, analysts’ average price target of $2.08 implies a massive upside potential of 725.4% from current levels.
While Canoo stock offers significant upside potential, investors can leverage TipRanks’ penny stock screener to find more such attractive penny stocks.
