LION E-Mobility AG Outlines Growth Prospects Amid Seasonal Sales Variations

LION E-Mobility AG reported a decline in Q1 sales to €1.2 million from €26 million in the previous quarter, according to NuWays AG’s latest research. The decrease, influenced by seasonal sales patterns, also saw EBITDA drop to €-2.6 million from €1 million. Despite the Q1 results, the management reaffirms its FY24 sales guidance of €60-65 million and EBITDA of €0.5-1 million.

The company’s Annual General Meeting highlighted the potential growth in the mid-term with a sales target of over €150 million by FY28e. This growth is expected despite a predicted annual price decline of 9%. LION E-Mobility is focusing on expanding into three primary markets: electric city buses in Europe, electric trucks in North America, and stationary storage solutions.

A forthcoming product update in H2, featuring a new LFP battery pack and a higher energy density NMC pack through a partnership with SVOLT, is anticipated to boost the storage market. Additionally, the company is developing an immersion-cooled pack targeting hybrid and sports cars, expected to drive mid-term sales significantly.

Shares of LION E-Mobility AG are currently valued attractively at approximately 0.5 times EV/Sales for FY24e, which is below the industry average. NuWays AG has adjusted the target price to €7.00 but maintains a "Buy" rating, reflecting the company's promising growth trajectory and financial strategy.