Microvast sees its total addressable market within EVs as $30 billion, driven by rising EV penetration. Since 30 percent–40 percent of the EV value lies in the battery, battery manufacturers are expected to play a pivotal role in the EV value chain. Unlike many other EV-related names that went public recently, MVST has existing sales and generated $100 million in revenues in 2020. Microvast expects its revenues to rise at a CAGR of 87 percent from 2020–2025 to reach $2.3 billion by 2025. While investors should take these projections with a pinch of salt, MVST has at least something backing up these claims.
Microvast already has $1.5 billion in contracted revenues until 2027. Its strong customer partnerships could see it get EBITDA positive soon. The company sees itself turning adjusted EBITDA positive in 2021 and foresees an adjusted EBITDA of $465 million in 2025. Getting EBITDA positive could be a big catalyst for MVST stock. Investors should watch the company’s next quarterly results, which are scheduled for Aug. 6. Overall, given the company’s strong growth prospects, robust customer relationships, revenue visibility, and attractive valuation, the stock looks like a good buy.
View more information: https://marketrealist.com/p/should-i-buy-microvast-mvst-stock/