Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Thursday, Canaccord Genuity revised its price target for Wallblox N.V. (NYSE:WBX) shares, reducing it to $1 from the previous $1.50, while maintaining a Buy rating for the stock. Currently trading at $0.45, near its 52-week low of $0.41, the stock has declined 69% over the past year. The adjustment follows Wallblox’s recent earnings report, which did not meet the firm’s expectations.
Stifel analysts cited the necessity to alter their financial projections for Wallblox after the company’s earnings fell short. The company reported negative EBITDA of $88.43 million and operates with a significant debt burden, with a debt-to-equity ratio of 2.61. The new discounted cash flow (DCF) analysis now incorporates a roughly 14% weighted average cost of capital (WACC) and an estimated 5% terminal growth rate. Despite the earnings miss, Canaccord reaffirmed its positive outlook on Wallblox’s stock. InvestingPro analysis reveals 14 additional key insights about Wallblox’s financial health and market position.
The firm remains optimistic about Wallblox’s future, particularly noting the company’s potential to capitalize on a rebound in electric vehicle (EV) demand. While revenue grew 16.1% in the last twelve months, InvestingPro data indicates the company is quickly burning through cash. Canaccord Genuity’s stance is bolstered by Wallblox’s strategic partnerships and the anticipated increase in commercial charger installations, which are expected to contribute to the company’s growth.
Canaccord Genuity’s report reflects confidence in Wallblox’s ability to navigate the market despite the recent setback. The firm’s analysts believe that Wallblox is well-positioned to benefit from industry trends, especially as the EV sector continues to evolve.
In summary, while Wallblox’s recent earnings did not align with Canaccord Genuity’s earlier estimates, the firm maintains a positive perspective on the stock’s potential. The price target adjustment to $1 takes into account the revised financial projections while still endorsing Wallblox as a worthwhile investment with a Buy rating.
In other recent news, Wallbox NV reported a mixed performance for the fiscal year 2024, with full-year revenue increasing by 14% to €162 million. However, the company faced a 14% decline in fourth-quarter revenue compared to the previous year. The gross margin fell short of expectations, coming in at 34.6%, below the target range of 38-40%. Despite these challenges, Wallbox managed to reduce operating expenses by 11% year-over-year and improved adjusted EBITDA by 21%, although it remained negative. The company has set a revenue target for Q1 2025 and expects gross margins to improve to between 37-39%. Wallbox aims to achieve EBITDA breakeven at a quarterly revenue of €40-45 million. The company raised an additional $10 million through a private placement, strengthening its cash position. Analyst discussions during the earnings call highlighted concerns about capital raise strategies and future profitability, with Stifel’s Steven Gengaro probing the company’s path to EBITDA and cash flow positivity.
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