H.C. Wainwright reaffirms Worksport stock Buy rating despite share decline

Published 11/07/2025, 12:26
H.C. Wainwright reaffirms Worksport stock Buy rating despite share decline

Investing.com - H.C. Wainwright has reiterated its Buy rating and $11.50 price target on Worksport Ltd. (NASDAQ:WKSP), despite the company’s shares declining 5.0% in Thursday trading against a 0.5% increase in the Russell 2000 index. According to InvestingPro data, the stock has shown significant volatility, with a beta of 1.97 and a 57% decline year-to-date, though it’s currently trading above its 52-week low of $2.44.

The tonneau cover manufacturer preannounced second-quarter 2025 revenue of $4.1 million, representing an approximately 83.0% sequential improvement from first-quarter 2025 results. This figure was largely consistent with H.C. Wainwright’s estimate of $4.3 million.

Worksport also reported expanded gross margin of 26.0% in the second quarter, up from 17.7% in the first quarter and exceeding the research firm’s forecast of 21.2%. The company believes gross margins can approach 30.0% by year-end.

New product initiatives, including the SOLIS Solar Tonneau Cover and COR Portable Energy System, are expected to launch during the second half of 2025 and could drive material new revenue over time, according to the research note.

Worksport is scheduled to present full second-quarter 2025 results in mid-August, which should provide more detail on potential launch schedules and timeline to profitability.

In other recent news, Worksport Ltd. reported a notable increase in revenue for the first quarter of 2025, showcasing a 337% year-over-year growth, with sales reaching $2.24 million. Despite this significant rise, the company faced an operating loss, reflecting ongoing investments in new product lines. H.C. Wainwright analysts have reaffirmed their Buy rating on Worksport stock, maintaining a price target of $11.50, following the company’s announcement of record monthly sales in April, totaling $1.2 million. The surge in demand was primarily attributed to the company’s premium AL4 tonneau cover, which accounted for approximately 40% of April’s product sales.

Worksport has also secured ISO 9001:2015 certification for its production facility, which is expected to strengthen its position in the automotive industry. This certification could unlock new opportunities with major automotive Original Equipment Manufacturers (OEMs) and distributors. Additionally, Worksport announced a collaboration with a major U.S. construction company to test its solar tonneau covers and portable energy systems. The construction firm will initially acquire two sets of Worksport’s SOLIS solar tonneau covers and COR portable energy systems as part of a commercial pilot project.

The company is also preparing to launch new clean-tech innovations, including the SOLIS solar-integrated tonneau cover and the COR portable power system, later in 2025. These upcoming products, combined with the robust sales of its tonneau covers, are anticipated to drive substantial growth and improved shareholder value in the coming quarters.

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