Beam Global reinstated with a Hold at Needham

Needham analyst Vikram Bagri initiated coverage of Beam Global with a Hold rating. The analyst states that strong revenue growth looks likely given the company’s pipeline and backlog and its CEO’s confidence, while also noting that its margins are trending in the right direction. Needham adds however that investors are awaiting a sign that Beam Global can fully scale into its growth opportunity before assigning a higher multiple. The firm contends that Beam needs to show a path to EV ARC margin improvement in FY23, after proving in FY22 that it can sell EV ARCs at high growth rates.