Earlier this year, Volta Industries Inc. announced its intentions to go public via a merger with SPAC company Tortoise Acquisition Corp. II (NYSE:SNPR). The proposed merger has now been approved by shareholders and the combined company will debut on the NYSE under the ticker symbol VLTA.
The completed merger was valued at $1.4 Billion and Volta have raised roughly $600 Million in cash proceeds. The proceeds will also accelerate Volta’s buildout of its charging network to meet its high demand across the United States.
With Volta expected to debut on the NYSE this morning, this article will breakdown the Volta stock forecast over the next 5 years.
What investors need to know about Volta?
Firstly, over the past decade Volta has built a nationwide electric vehicle charging network. Volta charging stations are among the most used in the United States. Volta’s business model is positioned strategically to capitalise on Megatrend tailwinds including electrification, decarbonization, digital media and big data. The company is targeting a $500 Billion refuelling market which will be up for grabs as the world transitions to zero carbon.
In a recent press release, the company noted that Volta has installed 1,700 EV charging stations so far across the United States. Furthermore, the company expects to install up to 3,142 stations by the end of the year and 6,492 by 2022.
Volta stock forecast over the next 5 years
Volta Industries generated $25 Million in revenue last year with majority of the revenue resulting from their charging network segment. However, the companies revenue segments are growing with its behaviour & commerce revenues expected to take affect in 2021. For the current calendar year, the company forecasts revenues to reach $47 Million.
The year-on-year forecasted revenue growth is a driving factor in the bullish sentiment for Volta stock. Over the next 5 years, the company expects a CAGR of 100% which is well above its direct competition. By 2025, the company expects to generate $826 Million in revenue with the charging network driving 56% of sales. The behavioural & commerce segment is also expected to drive 37% of 2025 forecasted revenue while the data segment will contribute the remaining 7%.
In the same year, the company also expects to install 26,242 charging stations. The company noted that Volta’s average 2021-2023 gross margin percentage is 10% higher than EV charging competitors. Overall, the company looks well positioned to benefit from the EV tailwind based on the companies revenue growth outlook.
The Bottom Line – Volta stock forecast 2025
In summary, the SPAC merger between SNPR and Volta will provide essential capital for Volta to meet its growing demand backlog. The emerging market that Volta aims to tap into is clearly an exciting prospect for investors, which we saw in yesterdays market performance.
Lastly, the revenue guidance provided by the company highlights the emerging market opportunity. At this stage, the forecasts are based on certain variables being met in that time frame so we may see these forecasts change over time.
Overall, Volta stock will be one to watch over the next few years.
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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