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Keep buying these 3 EV shares, says an analyst after the conference
Investors are always looking for the next big thing, the next industry that will bring big returns. At best, it is an inaccurate science to predict what the explosion of the commodity sector will be; but like politics, stocks move down the chain of culture. And now culture is all about clean energy and electric cars. Monitoring the electric vehicle (EV) sector for Colliers Securities is industry expert Michael Schlisky. Last week, Shliski had the opportunity to meet with the management of a number of electric car companies at Colliers’ spring conference on alternative transport, which gave him a chance to sharpen his vision for the sector. Over the past six weeks, EV stocks have declined significantly. However, Shliski believes that “perhaps the ideal time for investors to test the waters for stocks that may have fallen too far, too fast …” The analyst added: “In our opinion, the institutional investors circling the sector can finally to be able to take a new look, with ratings much lower in recent weeks. “Although Shliski sees that the current conditions offer investors the opportunity to buy at attractive prices, he notes that the electric car sector is likely to continue to face challenges in the near future. He recommends a two-year deadline for investors in the sector – and continues to notes several EV stocks that investors should consider: We’ve opened the TipRanks database to get the latest details on three of Shlisky’s stocks, let’s take a look and see what brought this analyst to Arcimoto, Inc. (FUV) The EV lineup we’re looking at is Arcimoto, an Oregon-based EV maker specializing in a line called the Fun Electric Vehicle, or FUV.FUV is Arcimoto’s flagship design, a three-wheeled vehicle that holds two in tandem configuration, boats with a maximum at 75 miles per hour and a mileage of 102 miles on a single charge.The vehicle is designed for short journeys, casual driving or regular driving. from middle class to and from work. Arcimoto takes the s s for FUV, and the vehicle is now available on the West Coast and in Florida. In addition to the FUV, the Arcimoto offers variants of the vehicle built on the same chassis and a design with dual front-wheel drive. The main options are Deliverator, a light delivery truck specializing in the urban landscape, and a fast response agent available on the market for fire services and emergency medical care. The key point for quick response is directly related to the small size and maneuverability of the vehicle – it can reach places where large emergency trucks cannot, which makes it probably the “first on the spot”. Arcimoto has introduced the Roadster model, inspired by motorcycles, for customer orders. Shares of Arcimoto have seen their ups and downs – all in recent months. The company’s shares rose a staggering 721% in 2020, and then gained another 177% to reach its peak – and all-time record – in early February this year. Since then, stocks have fallen 64%, prompting investors to ask, “What does it give?” The explanations are actually simple; in Wall Street’s overall view, FUV won dramatically last year when the EV sector as a whole performed well, and returned some of those gains when the combination of inflation worries, rising government bond yields and questions about how to value stocks on during the pandemic, the recovery put pressure on markets in February and March. Shliski sees potential for Arcimoto – in fact, this is one of his best proposals in the sector – both in the short and medium term, with a focus on the eponymous Fun Vehicle. He notes that Florida sees early success with FUV. “In line with the many happy social media posts we’ve seen in recent weeks, FUV is seriously supplying Florida. Management noted that another truck full of vehicles was on the way as we spoke at the conference. Given the significant number of tourist attractions, communities of gated communities, campuses and golf facilities, Florida is a leading pre-order country for FUV. The company is planning a number of physical locations in the state, including rental fleets, “said Shliski. From the company’s overall position, the analyst adds: “We can expect continuous improvements in production pace this year, increasing to the new r-AMP facility and full assembly capabilities next year.” Based on all of the above, Shlisky estimates Arcimoto shares Buy, and its $ 20 target suggests there is room for a 57% rise in shares this year. (To check the Shlisky record, click here) In total, there are two reviews for FUV and they are evenly divided Buy and Hold. This makes a consensus on moderate buying, and the average price of $ 14 suggests 6% up from the trading price of $ 13.23. (See FUV stock analysis for TipRanks) ElectraMeccanica Vehicles (SOLO) ElectraMeccanica Vehicles is a company fighting for a similar niche in Arcimoto. The company markets a single-seater electric bus designed for the city market and offering a top speed of 80 miles per hour, a range of 100 miles and a three-wheel configuration. The chassis comes with a more traditional FUV body, a door on both sides of the car and a luggage rack. The Solo car is available for pre-order, but ElectraMeccanica has not yet started deliveries. The company has chosen Phoenix, Arizona as the site for the proposed factory complex, which will include light vehicles, along with batteries and power testing workshops. ElectraMeccanica is also beginning to diversify its product line with a pair of two-seater vehicles. These are the Tofino sports car and the Electric Roadster. Both feature a more traditional automotive style than the Solo, as well as significantly higher performance and charging range. Like the Solo, both are available for pre-order. ElectraMeccanica remains a truly speculative investment; the company has not yet reported more than $ 250,000 in quarterly revenue. At the end of 2020, the company reported using $ 10.5 million in cash for operations, compared to $ 3.6 million for the quarter a year ago. However, the company also said it has $ 129.5 million in cash available as of Dec. 31; this is a dramatic improvement from the $ 8.6 million reported a year earlier. The company plans to begin deliveries of vehicles later this year. In its review of SOLO shares, Shlisky focuses on upcoming vehicle deliveries as a major catalyst for ElectraMeccanica. “SOLO reiterated that it expects to make its first retail deliveries in 2021, most likely vehicles manufactured by the company’s Chinese partner. The company also continues to launch retail outlets (a total of 20 in operation or announced) to generate test drives and additional reservations …. SOLO has finally made its choice to build its installation in Arizona; what we didn’t expect was the first official announcement of micromobility at the same time. That said, it was something we expected, given the location of the SOLO model between a moped and a car, both of which are widely rented, ”the analyst wrote. In the end, Shliski simply says, “The stock is volatile, but we will stick to it as initial deliveries begin to reach the alleys.” Consistent with these comments, Shlisky gave SOLO a rating for the purchase. Its price price of $ 7.50 suggests an increase of ~ 60% over the next 12 months. Like the Colliers analyst, the rest of the street is bullish on SOLO. 3 Purchase ratings versus no retention or sale are added to the consensus rating for a strong purchase. At $ 8.92, the average price target is more aggressive than Schlisky’s and suggests a potential for a 90% increase. (See TipRanks SOLO stock analysis) Forum Merger III (FIII) Last but not least is Forum Merger III, a special purpose acquisition company (SPAC) that is in the late stages of the Electric Last merger business combination process. Mile Solutions. ELMS is an electric car manufacturer based in Troy, Michigan, not far from the heart of Detroit in the American automotive industry. Electric Last Mile is working on a city delivery van, a light truck with 170 cubic feet of cargo space, a range of 150 miles per charge – and a short 2-hour full charge interval. The ELMS EV minibus is specifically designed to compete with Class 1 gas-powered petrol stations. Although it has a smaller range than internal combustion vehicles, it boasts more cargo space than the leading gas van. In addition, the ELMS is available with a built-in digital air connection, allowing fleet managers to collect real-time data on the route, tracking and efficiency of the vehicle. Urban delivery vehicles are available for pre-order. Although ELMS has not yet started deliveries of vehicles, it has acquired the production capacity needed to meet expected demand. The company has a 675,000-square-foot factory in Mishawaka, Indiana, and is increasing its production capacity to 100,000 commercial vehicles annually. The company plans to begin production on the first 45,000 orders by the end of 3Q21. As mentioned above, Forum Merger III will publish the ELMS publicly. The merger was announced in December; when completed, the combined site will take the name Electric Last Mile Solutions and display a list of “ELMS” on the NASDAQ as a ticker symbol. The combination will create a $ 1.4 billion company and is expected to generate $ 379 million in operations and growth. The upcoming SPAC merger caught the attention of Colliers’ Shlisky, who described ELMS as another “best place” in the EV space. “ELMS is one of the most promising stories for EV-CV this year … ELMS plans to launch a Class 1-2 vehicle in 2021 … assembled from kits at its already built facility in Indiana,” said Schlisky. Shliski continues to outline the advantages of the vehicle and its potential for future profitability: “[Its] The Class 1-2 product has the same initial costs as existing ICE vehicles, but offers 35% or more cargo space, plus fuel savings and maintenance from there. After 2020, in which e-commerce activity in the US increased by more than 30% and van production fell by 15%, along with the exit from three important competitive models (10% share) in 2020-2021. , there is an acute need for capacity and ELMS seems uniquely ready to meet this need if performance is strong on the startup timeline. In our opinion, all this adds to one of the most promising ideas for EV-CV. “Based on these comments, Shlisky recommends buying FIII before the merger. Its target price for the stock is $ 13, which suggests a 30% increase from current levels. Overall, FIII has a small but vocal camp of bullish analysts. From both analysts. , surveyed by TipRanks, both value the stock for purchase.With a potential return of ~ 81%, the 12-month consensus share price price is $ 18. (See FIII analysis of TipRanks shares) To find good ideas for EV stocks trading at attractive ratings, visit TipRanks’ Best Stocks to Buy, a recently launched tool that brings together all TipRanks statistics.Disclaimer: The opinions expressed in this article are solely those of the analysts provided. is for informational purposes only.It is very important to do your own analysis before making any investment.