Canoo Inc.

Canoo Inc. (NASDAQ – GOEV) Canoo Inc. is a mobility technology business specializing in electric vehicle design and development. The company is working on a software platform that will combine data from both Canoo and non-Canoo vehicles and provide useful insights to its clients. Canoo Inc. works through a Multi-Purpose Platform which is a self-contained, fully functional rolling chassis that holds all the key components for an electric vehicle's operation. 

Key highlights

• Q1 FY22 results in the announcement: Canoo Inc. stated on April 26, 2022, that its financial results for the first quarter ended March 31, 2022, would be released after market close on Tuesday, May 10, 2022. Following that, the Company will hold a conference call and live webcast to discuss the results, which will be followed by a question-and-answer session.
• Increased operating expenses: Operating expenses for the Q4FY21 increased from USD 42.5 million to USD 138.9 million, which included USD 88.2 million for research and development, and USD 50.7 million for SG&A. For the whole year 2022, operating expenses were USD 440.9 million compared to USD 110.2 million a year ago.
• Increased costs leading to increased losses: Net losses for the year increased from USD 86.7 million for FY20 to USD 346.8 million for FY21. This further led to a negative Adjusted EBITDA of USD 332.6 million in FY 21 from a negative adjusted EBITDA of USD 108.3 million in the previous year.

                                    Source: Company filings

• Technical analysis: A bearish indicator is that the stock is now trading below its critical short-term (50-day) and long-term (200-day) SMA support levels. The stock is now trading towards the bottom of its 52-week range of USD 4.60 to USD 13.85. In the last six and twelve months, the stock price of GOEV has dropped 60.88 % and 48.06 %, respectively.

One-year technical Price Chart (as of 28 April 2022). Analysis by Kalkine

Conclusion: Given the stock's considerable price fluctuation over the last year, and the lack of insight into profitability, present valuation, and related risks, we propose a "Watch" rating on the stock at its current price of USD 5.02 on April 28, 2022.

Technical Analysis Summary

* Closing price as of April 28, 2022.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.

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