Roth Initiates Coverage of Canoo with $30 Price Target
Roth Capital Partners initiated coverage of Hennessy Capital Acquisition Corp. IV target Canoo Holdings Ltd. with a $30 price target, indicating more-than 50% upside from the current share price. The report, authored by Craig Irwin and Andrew Scutt, highlighted the advantages of Canoo’s “skateboard” platform that allows new vehicle “top hats” to be developed in just 12-18 months vs. four to five years for a traditional vehicle. Roth also noted that the company’s zero-commitment subscription model for the Lifestyle Vehicle, which is differentiated from rental or long-term leasing, should resonate with younger consumers.
Shares of Hennessy (ticker: HCAC) have nearly doubled in recent weeks following IPO Edge’s initial analysis (read here) and EV Forum featuring Canoo CFO Paul Balciunas (watch here). Shares of HCAC rose 8% in midday trade Wednesday to $19.50 per share. Shares of HCAC will automatically convert to Canoo shares following a shareholder vote to approve the merger on December 21.
Contact:
John Jannarone, Editor-in-Chief
editor@IPO-Edge.com
Twitter: @IPOEdge
Instagram: @IPOEdge
