Needham maintains Hold rating on Beam Global stock amid balanced outlook

Published 15/08/2025, 12:00
Needham maintains Hold rating on Beam Global stock amid balanced outlook

Investing.com - Needham has reiterated its Hold rating on Beam Global (NASDAQ:BEEM) following the company’s second-quarter results, citing a balanced risk-reward profile at current price levels. The stock, currently trading at $2.38, has shown significant momentum with a 12% return over the past week, though it remains down about 53% over the past year.

The firm acknowledged Beam Global’s quarterly revenue was in line with expectations, while highlighting the company’s record gross margins and disciplined cost control as signs of operational progress. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.84 and holds more cash than debt on its balance sheet.

Needham noted that Beam Global is successfully executing its strategy to diversify away from federal customers through commercial and international expansion efforts.

Despite these positive developments, the firm pointed to near-term headwinds including muted U.S. federal sales and a modest backlog that could limit growth prospects in the immediate future.

Needham believes Beam Global’s current share price accurately reflects both the long-term opportunity in global EV infrastructure and the execution and policy risks the company faces, valuing it at approximately 10 times the firm’s 2029 adjusted EBITDA estimate when discounted back.

In other recent news, Beam Global announced its second-quarter earnings for 2025, reporting a 12% increase in revenue year-over-year, reaching $7.1 million. However, the company faced challenges as it reported an earnings per share (EPS) of -$0.28, which was slightly below forecasts by $0.01. Additionally, the revenue of $7.08 million fell short of the expected $7.25 million. These financial results are crucial for investors who keep a close watch on earnings and revenue performance. Despite the revenue growth, the shortfall in meeting expectations might be a point of concern. Analysts often use such data to adjust their projections and recommendations for the company’s stock. Beam Global’s recent financial performance highlights the importance of aligning with market expectations. Investors will likely be attentive to how the company addresses these discrepancies in future quarters.

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