Construction of the US vehicle manufacturing plant, located in Joliet, Illinois, is progressing as planned and is 80% complete. (Photo: courtesy)
What to do with the titles of Electric Lion, Apple and Dollarama? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.
Lion Electric (LEV, US $ 11.65; LEV, $ 14.76): Construction projects progressing as planned
Desjardins analysts held a virtual meeting with a few leaders of Lion Électrique recently and came out confident in the manufacturer of heavy electric vehicles.
At Lion, President and Founder Marc Bédard was present, as were Senior Vice President and Chief Financial Officer Nicolas Brunet and Vice President, Sustainable Development and Investor Relations Isabelle Adjahi.
“This meeting was an excellent opportunity to have an update on the company’s production expansion plans,” writes analyst Benoit Poirier.
In his opinion, the progress made on these fronts is not reflected in the recent drop in the stock and he sees it as a buying opportunity.
Construction of the US vehicle manufacturing plant, located in Joliet, Illinois, is progressing as planned and is 80% complete. Lion expects to be able to start using it by the end of the year.
The analyst points out that Lion hired Merkur as a consultant to help him with project planning, as well as the selection and delivery of production equipment. “This gives us confidence that Lion will be able to rapidly increase production at the plant,” he says.
On the Mirabel side, the battery plant coupled with an innovation center should be delivered at the end of 2022, which must deliver eight new types of vehicles by then.
“The Mirabel plant is strategic because it will contain a test center for the development of vehicles and validation programs with truck fleet operators should make it possible to obtain more orders”, writes Benoit Poirier.
The electric truck market is still young at Lion, with 19 deliveries, compared to buses (420 deliveries), but we note that the company has been able to sign deals with high profile clients like Amazon, CN and more recently. Day & Ross.
The analyst points out that Day & Ross is the third largest company in the trucking industry in Canada. In his opinion, the pilot project underway with the company is critical for the development of the trucks, as it could lead to a large order.
Benoit Poirier reiterates his buy recommendation and his one-year target price of US $ 26.
Apple (AAPL, $ 149.55): the new iPhones expected this afternoon
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