On Tuesday, H.C. Wainwright maintained a Buy rating on Ree Automotive Holding Inc. (NASDAQ: NASDAQ:REE) with a steady price target of $15.00.
Currently trading at $8.45, the stock sits below analyst targets ranging from $14 to $18, according to InvestingPro data. The firm highlighted the company's third-quarter financial performance, showcasing a notable reduction in expenses and losses compared to the previous year.
Ree Automotive's selling, general, and administrative expenses decreased by 32% to $5.8 million, down from $8.5 million in the same quarter last year. Research and development expenses also saw a reduction, falling 22% year-over-year to $12.4 million. InvestingPro analysis indicates a WEAK overall financial health score of 1.67, suggesting continued challenges despite cost improvements.
The company's operating loss for the quarter was reported at $18.5 million, showing an improvement from the $25.6 million loss in the same period last year. The adjusted EBITDA loss similarly improved, coming in at $15.1 million for the quarter, compared to a loss of $20.3 million in the third quarter of 2023. Despite these reductions in losses, the net loss widened to $38.5 million, or $2.56 per share, primarily due to a $14.4 million warrant re-measurement charge. This compares to a net loss of $24.1 million, or $2.39 per share, in the year-ago quarter.
The company's financial position as of September 30, 2024, showed $91.3 million in cash, cash equivalents, restricted cash, and short-term investments. Debt stood at $24.8 million. The analysis by H.C. Wainwright suggests confidence in the company's trajectory, as indicated by the reaffirmed Buy rating and price target, despite the mixed financial outcomes for the quarter.
The stock has shown strong momentum with a 117% return over the past six months. Get deeper insights into REE's valuation and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.