Alliance Global Partners analyst C. K. Poe Fratt lowered the firm’s price target on Canoo (GOEV) to $5 from $14 and keeps a Buy rating on the shares. The firm is adjusting its model following the company’s disclosure of having secured a credit revolver of up to $12M, along with the resignation of CFO and General Councel and a furlough for part of Oklahoma workforce. The moves were highlighted as part of the comprehensive plan and supply chain harmonization in preparation for the next phase of growth, though no cost saving estimates were announced and the impact on the timing of the expected production ramp seems likely to be negative, the analyst tells investors in a research note.
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Read More on GOEV:
- Canoo Secures Credit, Restructures Leadership, and Furloughs Staff
- Canoo partners with The AA in the U.K.
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- Canoo receives regulatory approval for U.K. pilot vehicles
- Canoo management to meet virtually with Benchmark
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