Small-Cap EV Stocks Are No Longer Getting Wall Street Love

Mar 01, 2022

Small-Cap EV Stocks Are No Longer Getting Wall Street Love

Wall Street isn't feeling much better after a rough run for small-cap electric-vehicle companies. Analysts aren't raising their ratings or price targets in response to recent stock drops.

Falling small-cap EV stocks are akin to a bloodbath. Companies are down an average of 28% year-over-year as of Tuesday trade. Moreover, stocks have fallen more than 70% on average from their 52-week highs. The majority of 52-week highs were recorded during March 2021.

The declines have not prompted Wall Street strategists to recommend purchasing the dip. Over 40% of experts covering small-cap EV companies rank the stocks as Buy. Six months ago, 54% of experts rated the stocks as Buy. Analysts' price forecasts have fallen in lockstep with stock prices.

A small-capitalization stock's average Buy-rating ratio is about 68%.

Lordstown Motors stock is the first example. Shares fell about 20% after fourth-quarter results were released on Monday morning, taking the company down around 26% year to year and nearly 88% from its March 2021 52-week high of nearly $22 per share.

Following results, Deutsche Bank economist Emmanuel Rosner reduced his price target from $7 to $3 per share. Jamie Perez, an analyst at R.F. Lafferty, reduced his price target from $7 to $4 per share. Both experts grade the stock as Hold.

In premarket trade, the shares were trading at $2.47, down around 3.9%. Futures on the S&P 500 and Dow Jones Industrial Average are both down approximately 0.6%.

Nine analysts in total cover Lordstown. Stock is rated Buy by none. One expert rated the stock as Buy six months ago. Three experts rated the stock as Buy a year ago.

Higher interest rates, inflation, and the crisis between Russia and Ukraine have dampened investor appetite for smaller and riskier businesses. However, the firms have also failed to match forecasts.

Management expected Lordstown's 2022 sales to be about $1.7 billion when it merged with a special purpose acquisition company or SPAC. Instead, the company is projected to make $30 million this year. On Monday, the business stated that it plans to ship around 500 automobiles this year.

Canoo stock has similar tendencies, although experts believe it has held up somewhat better than Lordstown. Canoo released its fourth-quarter results on Monday evening. In premarket trading Tuesday, the stock is down roughly 9% to about $5.3 per share. Canoo anticipates shipping around 4,500 automobiles in 2022. At the time of the SPAC acquisition, the business projected to ship 10,000 cars in 2022.

Analysts still prefer Canoo shares over Lordstown. According to Bloomberg, the firm is covered by four analysts, three of whom rate the stock as Buy. Nonetheless, when Canoo published results, the consensus analyst price target fell by around 25 cents per share. Perez of R.F. Lafferty reduced his price target from $21 to $20 per share. The current aggregate expert price target is $13.75 per share.

Analyst sentiment has been weakening for a variety of reasons that aren't related to recent quarterly results.

Faraday Future Intelligent Electric is covered by three analysts. Two analysts recommend the stock as Buy, with an average price target of $15. Half a year ago, all three analysts rated the stock as Buy, with a consensus expert price target of $21 per share.

Today, none of the seven experts tracking Electric Last Mile Solutions rank the company as a Buy. The consensus analyst price target is somewhat less than $5 per share. Six of the six analysts that track Electric Last Mile shares ranked the company as Buy six months ago. The median price target per share was about $17.

Stephen Volkmann, an analyst at Jefferies, is one of those disappointed with Electric Last Mile shares. He lowered the firm from Buy to Hold in early February when the business announced that its financial results for 2021 would be restated. Volkmann's price target has fallen from $18 to $2.50 per share.

It seems that investors cannot rely on analyst recommendations to improve results in small-capitalization EV equities. For firms to gain traction, they must begin producing and selling automobiles.

Subscribe Our Newsletter

Trump Media Explores Crypto Expansion with Proposed Bakkt Acquisition

Nikhil

Trump Media Explores Crypto Expansion with Proposed Bakkt Acquisition

Trump Media is negotiating to acquire the cryptocurrency platform Bakkt for $150 million, which would enhance its position in the rapidly growing market of cryptocurrencies and blockchain technologies.

Crypto
China's Economic Wobbles Cast Long Shadow For Asia
China’s Economic Wobbles Cast Long Shadow For Asia

China's economic woes have cast a pall over Asia, from South Korea to Thailand, as a severe manufacturing slowdown and trade bottlenecks in the world's second-largest economy impact Asia on both the supply and demand sides.

Banks and Finance
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Alexander

Investing Basics Quiz: How Well Do You Know Financial Markets?
It is essential to have a good understanding of the basics of investing and financial planning. Are you confident about your grasp of financial markets? Take our quiz to test your knowledge.

discover
Best trading strategies

Constantine

Top Most Popular Trading Strategies

Explore the question of what a trading strategy is, what it should be kept in mind when developing one, and what the most popular types are today.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.