Canoo stock price: Analysts are bullish on GOEV

GOEV stock closed at $3.41 on Wednesday and is up $0.67 during pre-market trading.

Shares of electric vehicle (EV) startup Canoo (NASDAQ:GOEV) have risen this week following the U.S. Department of Commerce's approval of its Oklahoma City facility as a Foreign Trade Zone (FTZ), paving the way for substantial cost savings.

Adding to the positive sentiment, analysts remain bullish about Canoo's growth prospects.

Why is the FTZ approval important?

The FTZ approval presents a significant opportunity for Canoo to lower its vehicle costs and enhance profitability.

The company anticipates total cost savings of $70 million in 2024 and 2025, further accelerating its path to breakeven.

Investment potential

Despite the recent surge, GOEV stock has faced considerable challenges, with a year-to-date decline of about 51% and a staggering drop of over 80% in the past year.

Factors such as macroeconomic uncertainty and ongoing cash burn have weighed on investor sentiment. However, analysts maintain an optimistic outlook on GOEV stock.

What analysts say?

Analysts say Canoo's transition into the revenue generation phase, coupled with a growing sales pipeline, expected cost savings from the FTZ, and solid backlog, positions the company for growth.

With a Strong Buy consensus rating based on three unanimous Buy recommendations, analysts express confidence in Canoo's future trajectory.