Microvast price target lowered to $4 from $8 at Oppenheimer

Oppenheimer lowered the firm’s price target on Microvast to $4 from $8 to reflect moderated growth expectations, while keeping an Outperform rating on the shares. While investors will likely focus on Microvast’s U.S. expansion challenges and a slower growth trajectory, the firm believes several key areas are going well for the company. First, Oppenheimer thinks its factory yields are at 97%+ in China driving upside to gross margin estimates. It also sees demand growth for its commercial vehicle products in China and the EU, which is sufficient to sell-out its China capacity. Lastly, the firm believes Microvast is evolving its chemistry offerings in stationary storage to maintain its technology leadership.