GreenPower Motor Company Is An EV Stock Worth Buying
GreenPower Motor Company (NASDAQ: GP), as small as it is, has got something that most other EV startups don't have. The company has orders, production...
GreenPower Motor Company On Verge Of Breakout Year
GreenPower Motor Company (NASDAQ: GP), as small as it is, has got something that most other EV startups don't have. The company has orders, production, deliveries, and more importantly, revenue and even positive earnings. What it also has is a focus that keeps it out of the higher-competition POV Market and one that is supported by secular tailwinds. The company manufactures electrically powered vehicles for the cargo, delivery, transit, School Bus, and RV markets. Not only is the company well-positioned for recreational trends but also for industrial expansion and infrastructure spending as well, and all of which include a massive push to electrification.
GreenPower Makes First Deliveries To Forest River
Forest River is an RV company of note for two reasons. The first is that it is owned by Berkshire Hathaway and the largest manufacturer of cutaway motorhomes by market share, the second is that it is actively working to electrify its fleet. To that end, it entered into a deal with GreenPower earlier in the year for cutaway van chassis and cabs upon which it would install purpose-built EV motorhomes. The first five of GreenPower's EV Star cab and chassis have been delivered, GreenPower says the deal is a transformative partnership and that there are more opportunities for collaboration across the Forest River product line.
GreenPower Motor Company Is Ramping Production
GreenPower Motor Company's fiscal Q4 results reveal a company in the early stages of a massive ramp-up in production. The $4.37 million in net revenue is not much in relation to the overall EV market but represents a 76% increase in year-over-year revenue and the beginning of a hyper-growth phase. The increase in sales is due to the delivery of 5 EV 250s to LAX Airport and the sale of 30 EV Star vehicles that had previously been on lease. Along with this news is the doubling of production of B.E.A.S.T all-electric school buses to 10 units per month in anticipation of demand after receiving positive feedback.
"With the consistent run-rate production for our EV Star and School Buses that was increased in Q4, we are building to meet the high demand for GreenPower products across multiple sectors including transit, delivery, student transportation, fleet operators, municipal and final-stage manufacturers," said Brendan Riley President of GreenPower. "GreenPower has the most compelling vehicles in the medium and heavy-duty, commercial EV sector. We expect strong demand for the foreseeable future."
The Analysts Are Quietly Bullish On GreenPower Motor Company
The analyst, all four of them, rate GreenPower Motor Company a Buy but there has been very little chatter since early in the year. The only analyst activity of note is from Maxim which maintained a Buy rating on the expectations for meaningfully higher revenue in fiscal 2022. Analyst Tate Sullivan points to the company's current orders-in-hand and plans to increase production as the basis for the thesis. Maxim holds the street high price target of $45 which implies a 125% upside.
The Technical Outlook: GreenPower Motor Company Is In Reversal
Shares of GreenPower Motor Company are up nearly 7% in the wake of the Q4 earnings report and appear ready to move higher. The price action is putting in a Head and Shoulders reversal pattern and the neckline is being tested right now. If the price action can rise above the $20 level we see it moving steadily higher over the next few months and eventually testing the all-time high near $35. In our view, a move above $35 would be very bullish and might lead to a 100% gain in its aftermath.
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