CIBCEQUITY RESEARCH
November 11, 2021 Earnings Update
LION ELECTRIC COMPANY
Near-term Supply Chain Issues Haven’t Derailed Our Positive Long-term Outlook
Our Conclusion
Our positive thesis on LEV is based on our view that it is well-positioned, given the accelerated push to electrify the transportation sector. We also recognize we are in the early innings of this transformation; so, we evaluate LEV on a number of KPIs to determine whether our long-term view on the company remains intact. Specifically, we are looking at KPIs around the execution of its strategies, such as deliveries, backlog and capacity growth/investments. While deliveries underperformed our expectations in Q3, we view this to be due to transient supply chain issues. We maintain our view that the best way to gain exposure to the emerging EV space is to focus on those names holding a first-mover advantage, i.e., those companies already offering a commercially viable product with a proven, customer-accepted technology. LEV is one such company. We maintain our Outperformer rating and $20 price target.