Analyst Scott Buck from H.C. Wainwright maintained a Buy rating on Worksport and keeping the price target at $11.50.
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Scott Buck’s rating is based on Worksport’s impressive revenue growth and improved gross margins, which have surpassed the company’s year-end targets. The third quarter revenue of $5.0 million marks a significant year-over-year increase, driven by enhanced production capabilities and manufacturing efficiencies. This growth trajectory is expected to continue with the introduction of new products, such as the SOLIS solar cover and COR battery system, which are anticipated to further bolster revenue streams by 2026.
Moreover, the company has secured $10 million in new capital to support these product launches, indicating a strong commitment to its growth strategy. Despite the current undervaluation of WKSP shares, trading at less than 1.0x the revenue forecast, the potential for scaling towards $100 million in revenue makes it an attractive investment. The combination of these factors, along with a clear path to profitability, underpins the Buy rating and the $11.50 price target set by Scott Buck.