Summary
- Proterra was oversold in March as profitability and growth weakened. Our finding suggests that it remains well-positioned to capture the long-term demand for heavy commercial EVs in the US and globally.
- Cost efficiencies through staff cuts and consolidation of bus and battery manufacturing may drive gross margin expansion in Q4 2023 and then FY 2024.
- At ~$1.1 per share, I believe this is an attractive entry point. Proterra appears undervalued even under my relatively conservative bull case target price.
Proterra (NASDAQ:PTRA) is a market leader in the design and manufacture of heavy commercial electric vehicles / EVs. It generates revenue by manufacturing and selling transit electric buses (“Proterra Transit” revenue stream) as well as proprietary battery systems and charging infrastructure services (“Proterra Powered and Energy” revenue stream).
Proterra went public through an IPO at around $26 per share. However, the stock has fallen significantly. It is currently trading at approximately $1 per share, reflecting a significant drop of ~96%. Concerns about breaching financial covenants in Q4 last year as well as significant increases in cost of sales due to recent supply chain disruptions and parts shortages have impacted share performance.
READ FULL ARTICLE HERE!
