Proterra Inc

Proterra Inc (NASDAQ: PTRA) is engaged in designing and manufacturing zero-emission electric transit vehicles and electric vehicles (EV) technology solutions for commercial use. The company focuses on offering solutions that enable commercial vehicle electrification through its three business units, Proterra Powered, Proterra Energy, and Proterra Transit.

Key Highlights

• The company reported YoY growth of 30% in total revenues to USD 61.94 million in Q3FY21 (ended September 30, 2021) compared to USD 47.54 million in Q3FY20.
• PTRA's reported net income of USD 36.32 million in Q3FY21 vs. net loss of USD 46.86 million in Q3FY20, whereas its net loss expanded to USD 204.87 million in 9MFY21 vs. USD 94.38 million in 9MFY20.
• As of September 30, 2021, the company had cash and cash equivalents (including short-term investments) of USD 727.49 million and total debt of USD 108.34 million.
• PTRA’s operating margin for Q3FY21 was -48.0%, significantly lower than the industry median of 10.2%.
• Its ROE was 5.3% in Q3FY21 vs. the industry median of 3.4%.
• On January 18, 2022, Nikola Corporation, a global pioneer in zero-emission transportation and energy infrastructure solutions, and PTRA announced a multi-year supply deal for Proterra's industry-leading battery technology to power Nikola zero-emission semi-trucks.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 6.52 to USD 26.85.
• PTRA's stock price decreased 51.28% and 71.01% in the past nine and twelve months, respectively.

Technical Price Chart (as of February 03, 2022). Analysis by Kalkine

Conclusion: Considering the significant correction in the stock price, long-term profitability issues, technical indicators, and associated risks, we recommend a "Avoid" rating on the stock at the closing price of USD 7.45, down 3.50%, as of February 03, 2022.

*The reference data in this report has been partly sourced from REFINITIV.