Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on REE Automotive (REE – Research Report) and keeping the price target at $15.00.
Amit Dayal has given his Buy rating due to a combination of factors, including REE Automotive’s recent memorandum of understanding (MoU) with a global technology company, which is expected to generate significant revenue by 2030. This agreement, if finalized, could lead to $770 million in sales, highlighting the potential for substantial growth in the company’s business operations. Additionally, REE’s ongoing business development efforts and the potential for monetization starting in 2025 further support this positive outlook.
Dayal also notes that REE’s focus on software and autonomous driving technology, rather than production, is a key strength. The company’s projected revenue growth, with an estimated $15 million in 2025 and a significant increase in vehicle sales by 2034, underpins the Buy rating. Furthermore, the anticipated improvement in gross margins and the expectation of positive EBITDA by 2026 contribute to the confidence in REE’s future performance. Despite various risks, such as market adoption and technological challenges, the overall growth prospects and strategic initiatives justify the Buy recommendation.
According to TipRanks, Dayal is an analyst with an average return of -22.9% and a 24.44% success rate. Dayal covers the Industrials sector, focusing on stocks such as Ceco Environmental, Plug Power, and Vertical Aerospace.
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