- Morgan Stanley analyst Adam Jonas lowered the price target to $4 (a downside of 30%) from $6 for Microvast Holdings Inc. (NASDAQ:MVST) while maintaining an Underweight rating on the shares.
- The analyst revised his estimates following the Q4 earnings call to reflect the company's updated outlook.
- Jonas noted that the current environment is creating challenges that have pushed a portion of the targeted growth "to the right," along with the FY22 capital expenditures forecast that was roughly double his previous forecast.
- Recently, MVST reported fourth-quarter revenue of $66.8 million, an increase of 39% year-over-year.
- Net loss was $(46.6) million in Q4 2021 compared to $(4.6) million in Q4 2020.
- Gross profit was $1.15 million in Q4 2021, compared to a gross profit of $8.7 million in Q4 2020.
- Microvast ended FY21 with $536.1 million in cash and equivalents.
- Outlook: Microvast expects FY22 revenue to grow 35% - 45% compared to FY21.
- For Q1, the company expects revenue of $32 million - $34 million (versus the consensus of $42.7 million), representing growth of ~115% - 128%.
- Price Action: MVST shares are trading lower by 14.6% at $5.72 on the last check Friday.
