Hyliion stock (NASDAQ:HLYN) rebounded strongly today after announcing their Long-Range Version of Hypertruck ERX. The enhanced ERX will offer 75 miles of all-electric range and enable equipped trucks to qualify for zero-emission vehicle credits.
However, the stock is still trading below its pre-merger PIPE price. Hyliion stock is now down 17% over the past month of trading.
Despite the recent performance, Wallstreet maintains a bullish outlook on Hyliion stock. Across the board of 5 Wallstreet analysts, the EV innovator’s average price target represents a 86% upside.
Hyliion vs Nikola gap set to widen
To put this into perspective, Nikola’s (NASDAQ: NKLA) average upside is 55% from its current trading price of $14.19. Therefore, we can see that there is an additional 35% upside in comparison to one of Hyliion’s closest competitors trading on the US market.
Furthermore, we will likely see this upside gap widen as Nikola founder Trevor Milton is charged by prosecutors with making false statements to NKLA investors. Although Milton is no longer at the company, this news is likely to test investor sentiment which may result in Wallstreet downgrades.
Cantor Fitzgerald analyst boosts Hyliion stock to $17
Cantor Fitzgerald analyst Josh Cohen initiated coverage earlier this month with a price target of $17 a share. Cohen noted that Hyliion is progressing closer to becoming a leader in providing electrified powertrain solutions for Class 8 vehicles.
Furthermore, the analyst added that the Hypertruck ERX has a total addressable market of $17 Billion annually in the US. Cohens target represents an upside of 75%, which is an encouraging sign for shareholders.
UBS reiterates target at $14 a share
UBS analyst Steven Fisher currently values Hyliion stock at $14 a share. The target still represents a 44.77% upside from the current trading price.
Fisher noted Hyliion should succeed in transitioning from “zero-revenues to taking a 6% share of the North America Class 8 market by 2030 as fleets move to reduce emissions”.
The analyst maintained a neutral rating on the stock, noting that the momentum was already priced-in in March. However, since the recent downtrend the upside has widened.
Hyliion expected to generate $1.5 Million in 2021
Hyliion is transitioning into becoming a revenue generating business. The company expects to recognize revenue on improved Hybrid products delivered in the second half of this year. The average revenue forecast for analysts expects Hyliion to generate $1.5 Million in 2021.
Furthermore, in the following year revenue is expected to spike with the average revenue target sitting at $87.88 Million. If this growth is realised, the companies revenue will grow at a rate of 5,758% based on Yahoo Finance data.
The transition to commercialisation for investors is significant, as the uptick in revenue will provide the business some relief from its current cash burn. The company currently has $334 Million in cash and equivalents.
Hyliion to capitalise on RNG megatrend
Firstly, Hyliion is paving the way of trucking innovation through renewable natural gas. This aspect of Hyliion creates a unique offering in comparison to competitors for investors.
Another advantage as CEO Thomas Healy explains, is Hyliion achieves net negative emissions by using renewable natural gas (RNG). The use of an RNG profile offsets the manufacturing emissions.
“Last year was a notable year for renewable natural gas (RNG) as it for the first time supplied the majority of on-road natural gas vehicle fuel……
With RNG solutions for heavy-duty long-haul trucking, Hyliion is uniquely positioned to benefit from this large and growing megatrend,”
Thomas Healy, Hyliion’s Chief Executive Officer on Q1 earnings release.
The bottom line – Wallstreet sees upside in Hyliion stock
Overall, it is clear Wallstreet is backing the RNG innovator with an average upside of 86%. In addition, the companies transition to commercialisation provides investors some confidence in the longevity of the businesses operations.
Hyliion are positioned well to capitalise on the growing RNG trend within the trucking industry.
It is worth noting that Hyliion stock is still staggering below their PIPE offering price. The equities volatility may exceed some investors risk tolerance at the moment. Nevertheless, Hyliion is one to watch as they move closer to commercialisation.
See the full Hyliion stock forecast here – Hyliion stock news
Written by Tyger Fitzpatrick, Founder of Youth Investment Group.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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