National Bank xpecting supply chain issues to remain a headwind in 2022, National Bank’s Rupert Merer reduced his financial estimates for The Lion Electric Co. , leading him to trim his target for its shares to US$13 from US$14 with an “outperform” rating. The average is US$17.18.
“Intensifying supply chain issues in H2′21 have led to year-over-year declines in unit sales across bus manufacturers (i.e., Blue Bird Corp. (NASDAQ: BLBD, not rated) down 33 per cent year-over-year and NFI Group (TSX: NFI, “outperform”, PT: $26.00/sh) down 43 per cent year-over-year for CY’Q3),” he said. “LEV’s shortage of non-critical parts prevented the completion and delivery of 50 units in Q3. Inventory volumes growing across the sector could point to a rapid recovery as critical parts are received, but more challenges could lie ahead.”