• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Canoo cut at Stifel on liquidity risks

by December 31, 2024
written by December 31, 2024

Investing.com — Stifel analysts downgraded Canoo from Buy to Hold in a note Tuesday, citing growing concerns about the company’s liquidity risks. 

The downgrade comes after a series of developments, including the suspension of production in Oklahoma and the company’s ongoing need for capital to sustain operations.

In their “30 Stocks in 30 Days” report, Stifel noted that while Canoo initially maintained a Buy rating due to its in-house technology and commercial delivery expectations, recent events have raised doubts about its financial stability. 

Stifel highlights that “GOEV is in our ‘Butch Huskey’ category,” referring to a baseball player with early promise but unprepared for sustained success. 

The downgrade reflects the concerns about Canoo’s ability to thrive in the competitive electric vehicle market.

Stifel explains that Canoo has an increasing need for capital, with the company actively seeking financing while grappling with rising operational challenges. 

“The company consolidated its facilities to three from six, which has continued to impact its workforce. At the end of October 2024, it furloughed 23% of its Oklahoma City factory workers for ~12 week,” said Stifel. “A few days after the furloughs in mid-December, Canoo announced the rest of its staff would be on a ‘mandatory unpaid break’ through at least year-end 2024.”

These moves come as the company consolidates its facilities from six to three locations in an effort to cut costs.

In addition, the company’s cash reserves remain under pressure. Stifel points to the fact that Canoo has been in “active discussions regarding additional financing,” but without securing the necessary funds on favorable terms, it could face insolvency risks.

A recent filing from Canoo warned that without new capital, the company could be unable to meet its obligations, potentially leading to litigation or further financial difficulties.

Reflecting these risks, Stifel has lowered its revenue forecasts and reduced the stock’s target price to $0.50, down from $4.50.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Lionel Messi lists real estate properties as REIT
next post
China seeks greater global cooperation on drug control

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • A.O. Smith misses quarterly estimates on sluggish water heater demand
    • Home sales, jobless claims, and PMI data to shape market sentiment

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy