Proterra rallies after BTIG calls out 50% upside off commercial EV upside
BTIG is bullish on Proterra (NASDAQ:PTRA) following the passage of the Inflation Reduction Act. The firm expects the legislation to accelerate electric vehicle adoption across the commercial EV market and increase demand for PTRA's e-transit bus.
Crucially, analyst Gregory Lewis and team expect PTRA to ramp its battery manufacturing capacity to 3-4GWh/year over the next two years, which should benefit from the ~$10/kWh tax credit available through the IRA.
Upcoming catalysts for Proterra (PTRA) identified by BTIG include the commissioning of the Greer, South Carolina facility , expansion of battery manufacturing capacity, offtake agreements with commercial auto OEMs, federal funding opportunities and tax credits, as well as the anticipated increase in commercial EV adoption.
BTIG started off coverage on Proterra with a Buy rating and price target of $7, which implies more than 50% upside potential. Shares of PRRA moved up 7.49% in premarket action on Monday to $4.88. The 52-week trading range for the EV stock is $4.27 to $13.22.