Wall Street Says This EV Stock Is Set to Soar -- Here's Why They Couldn't Be More Wrong
Many electric vehicle (EV) start-ups went public by merging with special purpose acquisition companies (SPACs) in 2020. But most of those newcomers disappointed investors by falling short of their ambitious production goals, and their stocks were crushed as rising interest rates highlighted their troubled balance sheets and popped their bubbly valuations.
One of those fallen EV stocks is Canoo (NASDAQ: GOEV), which dropped from its pre-merger high of $22 per share on Dec. 10, 2020 to its current price of about $0.64. But even after that steep decline, Wall Street remains firmly bullish.
Of the five analysts who cover Canoo, four rate it as a buy and only one rates it as a hold. The average price target is $3.11 -- which would represent a near-400% gain from its current price. Canoo might seem like a potential multibagger for bold investors at these penny stock levels, but I believe it's more likely headed to zero than the mid-single digits again.
Source Fool.com
