Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The proceeds will be used to increase and accelerate production volume, advance new products to market, replace previous higher cost financings, and support current working capital and other general corporate purposes, the company said in a statement. A basic 20X forward earnings multiple on that implies a 2024 price target for WKHS stock of $60 — nearly triple the WKHS stock price today. Article printed from InvestorPlace Media, https://investorplace.com/2020/10/workhorse-wkhs-stock-could-skyrocket-usps-contract/. It needs 140,000 new vans, and that contract is worth up to $6 billion.
In the running for a huge contract to supply electric delivery vehicles to the U.S. In my opinion, Workhorse is most definitely soon to get a large part if not all of the U… The postal service is replacing its aging fleet of gas-powered delivery vehicles. Businesses are committing to and doubling down on sustainability targets. In short, the company already has a working electric delivery van, with market leading range and top-notch performance specs, that the company is actively delivering to some of the biggest customers in this space — like FedEx (NYSE:FDX), UPS (NYSE:UPS), Ryder (NYSE:R) and DHL — at the same time that most other companies in the market are still in the “concept” phase. Click here to find out how. Let’s say the 350,000-unit U.S. delivery market reaches 20% EV penetration by 2025. All rights reserved.
For months, Workhorse has been perceived by the market as the NGDV contract’s most likely winner, given Workhorse’s clear leadership in the electric delivery van market. Despite several catalysts, the biggest driver of WKHS stock’s recent surge is the potential USPS contract. Workhorse (NASD: WKHS) stock should be a holding in every investors speculative portfolio right now. WKHS stock has turned into one of the market’s favorite stocks in 2020 for a few reasons. Covid-19 has delayed the pending U.S. One of the catalysts is the U.S. Roth Capital analyst Craig Irwin downgraded electric truck maker Workhorse Group (WKHS) - Get Report to neutral from buy after a U.S. Workhorse Group produces battery-powered electric vehicles. One, it’s become crystal clear that electric is the future of transportation.
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Besides the huge revenue boost, couriers and other delivery businesses are going to take notice. And, perhaps most importantly, the technology and economics underlying electric vehicles has improved to a point where they are a viable and economically sensible alternative to gas-powered autos. On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Dan is a freelance writer whose work has appeared in The Wall Street Journal, Barron's, Institutional Investor, The Washington Post and other publications.
It’s far from clear how things may turn out. Electric delivery van maker Workhorse (NASDAQ:WKHS) was a relatively unknown company for years. Index-P/E-EPS (ttm)-1.87: Insider Own: 4.10%: Shs Outstand: 120.03M: Perf Week-24.39%: Market Cap: 1.82B: Forward P/E-EPS next Y-0.29: Insider Trans-32.46%: Shs Float To many investors this looks like WKHS got the USPS contract as, according to this announcement, they are accelerating production volume. Thus, if you do make an investment, it’s probably best to not get too aggressive. 1125 N. Charles St, Baltimore, MD 21201. The the winner of the USPS contract will firmly establish themselves as the unrivaled leader in the electric delivery van market — and will presumably be able to leverage that leadership position to win more contracts with other delivery companies over the next few years, and ultimately turn into the industry’s Tesla. This year’s WKHS stock gains could be just the start. Workhorse is among the three bidders left. What if the company does not win the U.S. Post Office contract? In the former situation, WKHS stock soars over the next few years as electric delivery vans become the industry norm. They have significantly longer range, and a refill takes five minutes instead of an hour plus. Less than 1% of fleet vehicles are electric today. The fact is given the ROI of Workhorse vehicles, it is highly likely that the company has a decent chance of being the sole winner — but will at least have a big part in the contract.
Roth Capital downgrades Workhorse Group to neutral from buy. A ~70% share of that EV pie implies almost 50,000 Workhorse van deliveries in 2025. A win would be a big deal for Workhorse stock. In my opinion, Workhorse is most definitely soon to get a large part if not all of the U.S. Copyright © But now that USPS is “punting” on the contract, that “materially” increases uncertainty for Workhorse, he wrote in a report. In the running for a huge contract to supply electric delivery vehicles to the U.S. Connecting the dots, then, it’s actually pretty easy to see why WKHS stock rose by 10X in 2020.
But it did not get much attention until this year. The company got its start back in 2007 and was called AMP Electric Vehicles. Besides the huge revenue boost, couriers and other delivery businesses are going to take notice. Workhorse estimates that its vehicles have 60% less maintenance expense versus fossil-fueled trucks.