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Investing.com - H.C. Wainwright raised its price target on Microvast (NASDAQ:MVST) to $6.00 from $3.00 on Wednesday, while maintaining a Buy rating on the battery manufacturer’s stock. The company, currently valued at $848 million, has seen its shares surge over 720% in the past year, according to InvestingPro data.
The firm cited Microvast’s continued strength in operating performance and increased confidence in the timely completion of the Huzhou 3.2 expansion by the fourth quarter of 2025. This expansion will add 2 gigawatt-hour (GWh) of annual production capacity to support growth expectations in 2026 and beyond.
Despite reporting quarterly revenues below expectations, Microvast delivered gross margins and adjusted EBITDA that exceeded H.C. Wainwright’s estimates. The company maintained its revenue outlook for the year at $450-475 million while increasing gross margin expectations to 32% from 30%.
The EMEA region accounted for 43% of Microvast’s revenues in the quarter, while the U.S. market remained relatively small at 5%. H.C. Wainwright noted that Microvast has faced challenges capturing U.S. opportunities due to significant policy uncertainties.
The firm identified potential catalysts for the stock, including positive movement in ramping U.S. operations and filling key executive and investor-facing roles, which could help the company build market confidence and potentially command a better valuation multiple.
In other recent news, Microvast Holdings, Inc. reported its second-quarter financial results, revealing a mixed performance. The company posted revenue of $91.3 million, which marked a 9.2% increase year-over-year but fell short of the analyst consensus estimate of $109.77 million. Despite this revenue miss, Microvast surprised investors with adjusted earnings per share of $0.05, surpassing analyst expectations of breakeven results. Additionally, the company’s gross margin improved to 34.7% from 32.5% in the same period last year. These developments highlight the company’s ability to improve profitability despite challenges in meeting revenue projections. While the revenue shortfall was notable, the profit beat and margin expansion offer some positive aspects for investors to consider. The recent performance and financial metrics are crucial for stakeholders assessing the company’s current position.
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