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On Tuesday, H.C. Wainwright reaffirmed its positive stance on Microvast shares (NASDAQ:MVST), maintaining a Buy rating and a $3.00 price target. The company's stock has shown remarkable momentum, delivering a 255% return over the past year according to InvestingPro data. The firm's analyst, Amit Dayal, provided insights following the company's financial results for the fourth quarter of 2024, which were released on March 31.
Microvast showcased a year-over-year revenue increase of 8.4%, reaching $113.4 million for the quarter. The company also reported a significant improvement in gross profit, which stood at approximately $41.5 million, or 36.6% of revenues. This is a notable rise from the $33.6 million, or 33.2%, reported in the third quarter of 2024. InvestingPro analysis indicates strong growth potential, with analysts forecasting 25% revenue growth for FY2025 and a transition to profitability this year.
The adjusted EBITDA for the quarter turned positive, posting a profit of $8.6 million. This is a considerable shift from the adjusted EBITDA loss of $2.6 million observed in the same quarter of the previous year. Furthermore, the non-GAAP adjusted net loss for the quarter was markedly reduced to $0.6 million, or $0.01 per share, compared to a non-GAAP adjusted net loss of $11.4 million, or $0.04 per share, in the fourth quarter of 2023.
As of December 31, 2024, Microvast reported having cash and cash equivalents totaling $109.6 million. The analyst reiterated the Buy rating and price target, signaling confidence in the company's financial position and its performance improvements. The endorsement from H.C. Wainwright comes as Microvast continues to navigate the competitive landscape of the energy storage and electric vehicle industry. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. Investors can access 12 additional ProTips and a comprehensive Pro Research Report covering Microvast's detailed financial health analysis and growth prospects through an InvestingPro subscription.
In other recent news, Microvast Holdings Inc. reported record financial results for the fourth quarter of 2024. The company achieved an annual revenue of $380 million, marking a 24% increase compared to the previous year. For the fourth quarter alone, Microvast's revenue reached $113.4 million, reflecting an 8% year-over-year growth. The company also saw a significant improvement in its gross margin, which increased to 31.5% from 18.7% in 2023. Additionally, Microvast's adjusted EBITDA for the quarter was reported at $8.6 million.
Microvast's U.S. market revenue saw a remarkable 360% increase year-over-year, while the EMEA region also experienced substantial growth with a 123% increase in revenue. However, the APAC region saw a 19% decline due to strategic repositioning. Looking ahead, Microvast projects revenue growth of 18-25% for 2025, with guidance set between $450 million and $475 million. The company aims to maintain a gross margin target of 30% and focus on positive cash flow and market expansion.
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