With governments worldwide focusing on emission control initiatives and building green energy infrastructures, the electric vehicles (EVs) market has achieved significant growth over the past years. According to a Bloomberg New Energy Finance study, Zero-emission vehicles (ZEV) will account for 70% of new passenger vehicles globally by 2040.
Furthermore, President Biden’s push to transform the U.S. automotive industry to electrification through various initiatives, including tax subsidies for EVs, vehicle emissions restrictions, and funding to build charging infrastructure, are contributing to this industry’s growth. Biden signed an executive order directing the U.S. government to end purchases of gas-powered vehicles by 2035. And his administration’s infrastructure legislation has allocated $7.50 billion to build a nationwide network of 500,000 EV chargers. The EV market is expected to grow at a 24.5% CAGR to $980 billion by 2028.
Against this backdrop, Wall Street analysts see 87%-159% upside potential in EV stocks Hyzon Motors Inc. (HYZN), Arrival (ARVL), and Canoo Inc. (GOEV), which are currently trading at less than $10.
Click here to checkout our Electric Vehicle Industry Report for 2022
Hyzon Motors Inc. (HYZN)
HYZN in Honeoye Falls, N.Y., provides decarbonized solutions for the commercial vehicles market and hydrogen supply infrastructure by deploying zero-emission, hydrogen fuel cell electric vehicles (FCEVs).
HYZN this month announced that it would supply 18 fuel cell electric trucks to Hylane GmbH, a wholly-owned subsidiary of DEVK Versicherung, one of Germany’s largest motor insurers, in late 2022. This partnership with a strong player in the German market is expected to provide HYZN with a significant opportunity to fuel its long-term growth.
In February, the company announced the signing of a vehicle supply agreement between MaserFrakt, a Swedish transport group, and Hyzon Motors Europe BV, HYZN’s joint venture with Holthausen Clean Technology Investment B.V. Under the agreement, the company will supply two HyMax-250 fuel cell electric trucks to enable an emission-free transport system in Sweden. This is expected to be strategically beneficial for the company.
HYZN’s net sales increased 18.3% year-over-year to $782.12 million in its fiscal year ended Dec. 31, 2021. Its gross profit for the year came in at $142.58 million, reflecting an 18.3% increase year-over-year, while the net cash provided by financing activities stood at $30.31 million, up 139.6% year-over-year.
Analysts expect HYZN’s revenue for its fiscal year ending Dec. 31, 2022, to come in at $87.48 million, indicating a 1346.2% increase year-over-year. Also, the company’s revenue is expected to grow 529.8% year-over-year to $550.97 billion in its fiscal year ending Dec. 31, 2023.
HYZN’s shares slumped 5.1% in price intraday to close the last trading session at $4.84.
Among the seven Wall Street analysts that have rated HYZN, three rated it Buy, and four rated it Hold. The 12-month median price target of $9.33 indicates a 92.8% potential upside. The price targets range from a low of $6.00 to a high of $16.00.
Arrival (ARVL)
Based in Howald, Luxembourg, ARVL provides electric solutions to make the air clean by transitioning to electric vehicles worldwide. Its portfolio of EVs includes commercial EV vans, buses, and cars.
ARVL’s net cash from financing activities increased 99.1% year-over-year to €644 million ($699.19 million) in its fiscal third quarter, ended Sept. 30, 2021. Its cash and cash equivalents grew 32,889.5% from their year-ago value to €380.70 million ($413.33 million).
The Street expects ARVL’s EPS for its fiscal year ending Dec. 31, 2022, to improve 50.2% year-over-year. The company also surpassed the consensus EPS estimates in three of the trailing four quarters.
ARVL’s stock slumped marginally intraday to close the last trading session at $3.08.
Among the three Wall Street analysts that have rated ARVL, two rated it Buy, and one rated it Hold. The 12-month median price target of $7.17 indicates a potential upside of 132.8%. The price targets range from a low of $3.50 to a high of $12.00.
Canoo Inc. (GOEV)
GOEV in Torrance, Calif., is a mobility technology company that designs, engineers, develops, and manufactures electric vehicles for commercial and consumer markets in the United States.
The company’s net loss and comprehensive loss increased 1,407% year-over-year to $138.11 million in its fiscal fourth quarter, ended Dec.31, 2021. Its cash, cash equivalents, and restricted cash balance stood at $227.49 million.
GOEV’s EPS is expected to improve 2.2% year-over-year for its fiscal second quarter, ending June 30, 2022. Also, the company’s EPS estimate for the third quarter ending Sept.30, 2022 indicates an increase of 16.4% from the previous-year quarter.
GOEV’s shares have slumped 11.2% in price over the past month to close the last trading session at $5.07.
The two Wall Street analysts that have rated GOEV rated it Buy. The 12-month median price target of $18.00 indicates a 255% potential upside. The price targets range from a low of $15.00 to a high of $21.00.
Click here to checkout our Electric Vehicle Industry Report for 2022
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HYZN shares were trading at $4.92 per share on Wednesday morning, up $0.08 (+1.65%). Year-to-date, HYZN has declined -24.19%, versus a -6.87% rise in the benchmark S&P 500 index during the same period.
About the Author: Komal Bhattar
Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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