LION E-Mobility: An Update and Future Prospects

NuWays AG has released a new research update on LION E-Mobility, maintaining a buy recommendation with a revised target price of EUR 8.00. The company witnessed a 4% increase in FY23 revenues, totaling €56.1m. Despite a slight dip in FY EBITDA, significant improvements in operating cash flow were highlighted, moving from a €-6.8m in FY22 to €2.1m in FY23.

For FY24, LION E-Mobility has set a growth target of 7-16% year over year, with projected revenues ranging between €60-65m. This forecast, albeit lower than previous estimates, is backed by the company's enhanced sales strategies and major customer partnerships. Highlighted in the update is the firm's collaboration with SVOLT for FY25, aiming to boost battery pack production with higher energy density, significantly targeting the energy storage market.

Additionally, LION is progressing in the development of immersion cooled battery packs, with promising feedback from premium OEMs. This innovative stride could bolster the company's position in the e-mobility and energy storage sectors. Despite the cut in the target price from €10.50 to €8.00, the reiteration of a buy recommendation reflects confidence in LION E-Mobility's growth potential and strategic advancements.