Ola Electric shares surge 6% after Goldman, BofA initiate coverage, see up to 48% upside

Goldman Sachs’ target price signals an upside potential of 48% from the stock’s closing price on Monday, while BofA’s target suggests a 34% upside.

Here is a brief overview of what the two global brokerage firms had to say about Ola Electric’s future prospects:

Goldman Sachs: Buy | Target price: Rs 160

The global brokerage firm stated that the company is building local formula for the giga growth in Electric 2Ws and has positively levered to long-term structural trends in India’s E2W market.

Ola can achieve EBITDA breakeven in FY27 and the global brokerage firm expects FY24 to FY30 revenue growth of +40% CAGR, implying FCF breakeven in FY30 and also to achieve 11.9%/27% EBITDA margin/ROIC by FY30, Goldman further added.

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BofA: Buy | Target price: Rs 145

BofA believes Ola Electric is well-positioned to transform its two-wheeler segment to electric. The company’s technology and cost leadership are seen as competitive advantages, despite some skepticism about the battery technology.

Ola Electric Share Price Performance

Ola Electric shares were listed in August and have experienced a roller-coaster ride. After a subdued debut at the upper band price of Rs 76, the shares doubled to an all-time high of Rs 157.53 within seven days. However, amid profit booking, the stock faced significant pressure, falling by 22% over five consecutive trading sessions.

At its peak, the stock’s valuation was higher than that of Elon Musk’s Tesla listed on Wall Street.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)