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Roth Capital Downgrades This Electric Bus Manufacturer

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  • GP
  • Roth Capital analyst Craig Irwin downgraded GreenPower Motor Company Inc (NASDAQ: GP) to Neutral from Buy with a price target of $13, down from $32, implying a 7% downside.

  • The analyst expects continued margin pressure, mainly due to the recent drop in CA-HVIP subsidy rates, such as for the EVStars where the cut was from $80,000 to $60,000.

  • Irwin added that CA-HVIP voucher sizes are expected to be cut again in early 2023, so headwinds likely pose a longer-term challenge.

  • The analyst said he would look for management to make material progress lowering vehicle costs before potentially becoming constructive on the stock.

  • On Friday, GreenPower reported second-quarter results, with sales improving 57% to $4.44 million. The gross margin contracted 860 basis points to 21.5%

  • Inventory increased to $22.8 million compared to $12.5 million at March 31, 2021, and $5.7 million at September 30, 2020.

  • Price Action: GP shares are trading lower by 3.86% at $14.05 on the last check Monday.

Latest Ratings for GP

Nov 2021

Roth Capital

Downgrades

Buy

Neutral

Jan 2021

Maxim Group

Maintains

Buy

Sep 2020

BTIG

Initiates Coverage On

Buy

View More Analyst Ratings for GP
View the Latest Analyst Ratings

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