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Lion Electric Company (TSX:LEV), an electric vehicle (EV) maker, posted a triple-digit surge in its top line for the first quarter of 2021, following a successful merger with a blank check company Northern Genesis Acquisition Corp.
Investors might consider buying stocks of the EV auto and truck manufacturer, as Laurentian Bank Securities has provided it a buy rating and pegged its target price at C$ 27 apiece against its current share price of C$ 23.03 apiece.
After its SPAC merger, Lion electric share price has swelled nearly 26 per cent week-to-date (WTD).
Lion Electric is investing US$ 400 million to boost up its EV operations, including its US-based manufacturing site and building the next generation battery system in Québec.
As of March 31, it had a debt of nearly US$ 12 million, primarily including a loan against future vehicle subsidies.
Let us look at this EV stock’s price trajectory and financials:
Lion Electric Company (TSX:LEV)
The Montreal-based company provides zero-emission vehicles through its latest tech-driven batteries. In the first quarter of 2021, the company delivered 24 vehicles, a massive rise from two EVs delivered a year ago.
The company registered total revenue of US$ 6.2 million for the quarter, an increase of US$ 5.0 million compared to $1.2 million in Q1 2020. However, it reported a net loss of US$ 1.8 million, up nearly 64 per cent or US$ 0.7 million against US$ 1.1 million in Q1 2020. The loss is mainly due to the addition of a new workforce and production resource to accelerate EV volumes.
The company has entered the US EV market and begun trading on the New York Stock Exchange after combining with the special purpose acquisition company.
It also assembles all its vehicles' modules, such as battery units, truck cabins, auto bodies, etc.
Lion Electric's Listing-to-date Price Trajectory Against Volume. (Source: EODHD/Others)
After getting a buy call from the Laurentine Bank Securities, EV stock jumped more than four per cent on Friday, May 21. It was trading five per cent up from its previous close price on Tuesday, May 25 (10 AM ET). The stock could achieve the projected target this week.
