01:42 PM EST, 03/01/2024 (MT Newswires) -- National Bank provided an updated outlook for Lion Electric following Q4'23 results.
Key Takeaways (in US$)
Q4 sales of 188 units (10 truck, 178 bus) far below National's 300 units (40 truck, 260 bus), leading to revenue of $60 million (NBF $100 million, cons. $90 million), down from $80 million in Q3, the first quarter in two years of negative q/q growth.
Lion posted adj. EBITDA of $(6) million, roughly in line with forecasts, with lower SG&A and selling costs. The backlog fell q/q to 2,076 units from 2,232, and remains challenged by uncertainty on the Canadian government ZETF program (applies to roughly 50% of LEV's backlog). Government funding in the U.S. remains robust, but LEV could see near-term market softness. A working capital release of $50-75 million and reduced headcount should preserve liquidity in the near term.
Target cut to US$1.75/share (was US$2.25/share), based on a 1.3x EV/sales multiple on 2025E.
Maintain Sector Perform.
Price: 2.02, Change: +0.03, Percent Change: +1.26