6/19/2023 0 Comments Workhorse group uspsThings changed dramatically in late-June when ServPro signed a letter of intent to buy 1,200 Endurance pickup trucks from Lordstown Motors. The company continued to make losses and the stock traded below $7 per share, identical to the price level seen in mid-2010. The first half of this year, however, was business as usual for Workhorse investors. ( NASDAQ: WKHS) has been on a wild ride this year and shares are up a staggering 780% in 2020. Ian Cooper, a contributor to, has been analyzing stocks and options for web-based advisories since 1999.Workhorse Group Inc. On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. Longer-term, I’d like to see WKHS retest $42.50 – with patience. Riley analyst Christopher Souther just initiated a buy rating on the stock with a $20 target.įrom a current price of $12.95, I’d like to see an initial test of $20 a share. Plus, the company is exposed to a potential $18 billion last mile delivery market. Three, Workhorse’s cash position and earnings have been solid with year over year growth. Two, Biden wants to fund an all-electric future. For one, President Biden wants to electrify a federal fleet of 645,000 vehicles. Plus, it appears Workhorse still has plenty of solid potential catalysts ahead of it. I’d use weakness as an opportunity to buy the WKHS stock at current prices.Īfter gapping down on the USPS news, WKHS appears to have bottomed out. When the company posts first quarter earnings on May 10, I expect to see further improvement. fleets annually.Įven without the USPS contract, Workhorse seems to be doing just fine. Plus, according to the company’s investor deck, more than 350,000 last-mile delivery vehicles are bought by U.S. pure play OEM” in a last-mile delivery market valued at $18 billion. 11, Workhorse is a “ market leader, first mover and only U.S. In addition, net income came in at $69.8 million for 2020 from a net loss of $37.2 million year over year.Īlso, as I noted on Dec. For the full year, sales were up to $1.4 million from $377,000 year over year. Net income came in at $280.5 million from $655,000 year over year, as well. In its fourth quarter, sales were up to $652,000 from $3,000 year over year. The company has more than $200 million in cash, with more than 8,000 vehicles in its backlog. Workhorse Group Seems to Be Fine Without USPS In short, investors may want to use weakness as an opportunity. In fact, with growing global commitments for zero-emission vehicles, the market could balloon to $96.85 billion by 2023 from $48.54 in 2019. Three, the company could also see massive opportunity with electric delivery vehicles. Biden also asked for “$8 billion in Energy Department funding, a 27% increase over the current year, to advance clean energy research, a portion of which would go toward electric vehicles,” as noted by Detroit Free Press contributor Todd Spangler. While there’s no timeline for doing so, Biden did ask for $300 million to begin electrifying the fleet in a spending proposal. Two, we also have to remember President Biden wants to electrify the federal fleet of 645,000 vehicles. “Riley argues that the company’s delivery vehicle will beat most of the competition to market, and its large cargo area makes it an attractive option for a lot of potential customers,” as noted by Motley Fool contributor Lou Whiteman. Riley analyst Christopher Souther just initiated a buy rating on the stock with a $20 target.
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