Last Updated: 13 Nov 2024
Executive Summary
LiveWire Group Inc. (LVWR) is a manufacturer of electric motorcycles. The company has a market capitalization of $1.37 billion and is headquartered in Milwaukee, Wisconsin. LVWR's stock price has declined by over 50% in the past year, and the company is currently trading below its 50-day and 200-day moving averages. Analysts have a "Hold" rating on the stock, with a target price of $7.25.
Company Overview
LiveWire Group Inc. was founded in 2019 and is a subsidiary of Harley-Davidson, Inc. The company designs, manufactures, and sells electric motorcycles. LVWR's motorcycles are sold in North America, Europe, the Middle East, Africa, and Asia Pacific. The company has a manufacturing facility in Milwaukee, Wisconsin, and a design center in California.
Fundamental Analysis
LVWR's financial performance has been mixed in recent quarters. The company reported a loss of $102.58 million in the first nine months of 2023, compared to a loss of $100.3 million in the same period of 2022. Revenue increased by 0.45% to $30.96 million in the first nine months of 2023.
LVWR's gross margin was 9.4% in the first nine months of 2023, compared to 10.2% in the same period of 2022. The company's operating margin was -5.4% in the first nine months of 2023, compared to -4.9% in the same period of 2022.
LVWR's balance sheet is strong. The company has $190.7 million in cash and equivalents and no long-term debt.
Technical Analysis
LVWR's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is in oversold territory, which suggests that the stock may be due for a rebound.
Short Term Outlook
LVWR's stock price is likely to remain volatile in the short term. The company is facing headwinds from the rising cost of raw materials and the global economic slowdown. However, LVWR's strong balance sheet and the growing demand for electric motorcycles could provide support for the stock price.
Long Term Outlook
LVWR is a well-positioned company in the growing market for electric motorcycles. The company has a strong brand, a solid product lineup, and a strong balance sheet. LVWR is expected to benefit from the increasing adoption of electric vehicles and the growing demand for sustainable transportation.
Analyst Recommendations
Analysts have a "Hold" rating on LVWR's stock, with a target price of $7.25. The target price implies a potential upside of 13% from the current stock price.
