Workhorse Stock Gains Analyst Recognition Amid Strategic Shift

Workhorse US98138J2069

Shares of electric vehicle manufacturer Workhorse Group Inc. are attracting fresh attention from analysts following a significant corporate update. The stock, currently trading at $5.50, was recently elevated to a prominent position by a major investment research firm.

Zacks Investment Research has included Workhorse in its select list of "5 Top-Ranked Stocks," assigning it the #2 position. This ranking follows a screening process of more than 7,700 equities, focusing on criteria such as earnings per share (EPS) growth and consistent share price appreciation over 4, 12, and 24-week periods. Zacks notes the company has delivered an average earnings surprise of 19.89%.

Despite this momentum-based upgrade, the broader analyst consensus remains more cautious, currently standing at a "Hold" rating. However, the average 12-month price target sits at $21.00, suggesting a potential upside of approximately 282% from current levels.

Recent Corporate Developments and Financial Position

A key recent development was the completion of Workhorse's merger with Motiv Electric Trucks on December 15. The combined entity continues to operate under the Workhorse name and maintains its Nasdaq listing. The company's strategic focus has now shifted toward the medium-duty truck segment.

The transaction also bolstered the company's financial standing. Motiv's former majority investor is providing up to $50 million in new debt financing: a $10 million revolving credit facility and $40 million to support the supply chain. The company reports its nominal annual production capacity now exceeds 5,000 vehicles, and it serves ten of North America's largest medium-duty fleets. Scott Griffith has been appointed as the new Chief Executive Officer.

Workhorse's market capitalization is approximately $11.93 million.

Financial Performance and Forward Estimates

Current financial metrics highlight ongoing challenges. Trailing twelve-month (TTM) revenue stands at $10.62 million against a net loss of $64.43 million. For the full year 2024, revenue was reported at $6.62 million, a decline of 49.47% year-over-year.

In contrast, consensus estimates for the coming years paint a more optimistic picture. Analysts project a 90% improvement in results for 2025, followed by a further 56% enhancement anticipated in 2026.

Investment Outlook

The positive Zacks ranking and operational progress post-mergence provide a foundation for the optimistic forward estimates. These are counterbalanced by the company's relatively small market capitalization and its history of net losses. The investment thesis for Workhorse appears to hinge critically on the successful and rapid scaling of its production and sales. The realization of this assumption will likely determine whether the stock's substantial implied upside potential can be achieved.