Canoo price target lowered to $1.50 at Stifel as part of coverage transfer

Stifel transferred coverage of Canoo to analyst Stephen Gengaro who lowered the firm’s price target on the stock to $1.50 from $1.65 while keeping a Buy rating on the shares. Canoo is a “high-risk, high-reward stock” due to its ongoing financing needs and risks associated with ramping production volumes to profitable levels, the analyst tells investors in a research note. Stifel adds however that the firm is confident that demand for Canoo’s vehicles is strong, supported by a committed backlog of 18,000 units, another $2.8B in orders, and its belief in both the consumer and commercial versions of its EVs.