LION E-Mobility AG Secures €12m Order from Electric Bus Manufacturer KARSAN

LION E-Mobility AG, according to recent analysis by NuWays AG, has received an order worth €12 million for battery packs from electric bus maker KARSAN. The order, supporting LION's ambition for growth, includes €6 million in firm requests for delivery in fiscal year 2024, alongside a flexible €6 million component to adjust to KARSAN's requirements and the expanding electric bus market. KARSAN, primarily operating in Europe and extending its reach to North America and Japan, is anticipated to double its production, offering a significant opportunity for follow-up orders for LION.

Positive outlook is suggested with LION expected to publish preliminary FY23 figures soon, projecting strong sales in Q4 2023. The company foresees further order wins throughout FY24 in its Mobility and Storage segments, supported by the launch of a new LFP-based battery pack. Additionally, significant growth in sales and the achievement of at least EBITDA breakeven in FY24 is anticipated, making its valuation attractive. NuWays AG reiterates its BUY recommendation for LION with a target price of €10.50.