RE:target price 2024-08-16 07:37 ET - In the News
The Globe and Mail reports in its Friday edition that National Bank Financial analyst Rupert Merer has lowered his recommendation for Exro Technologies to "sector perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Merer says Exro has an "uncertain" outlook. Mr. Merer slashed his share target by 75 cents to 65 cents. Analysts on average target the shares at 91 cents. On Thursday Exro reported a record $5.3-million in sales, which fell below both Mr. Merer's $17.2-million estimate and the consensus forecast on the Street of $17-million. Revenue came from the delivery of 36 electric propulsion units, which missed the analyst's projection of 77 units. Mr. Merer says in a note: "We had also forecasted more than $3-million from the sale of Exro's coil driver systems, although we believe sales were materially lower with delays to commercialization of the product. The company reports that it had 40 electric propulsion units in inventory at the end of Q2 awaiting a software patch, which, if delivered, would have brought results closer to our forecasts. The units were delivered in early Q3. ... Exro is in late stage conversations to secure a working capital line of credit."