Morgan Stanley Cuts Microvast Price Target Post Q4 Results

Morgan Stanley analyst Adam Jonas lowered the price target to $4 (a downside of 30%) from $6 for Microvast Holdings Inc. 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.

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