NEW YORK, NY / ACCESSWIRE / October 10, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage on ADOMANI, Inc. (NASDAQ: ADOM) with a 12-month price target of US $10.20.
The report is available here: ADOM Initiation Report.
We initiate coverage on ADOMANI Inc. (Nasdaq CM: ADOM, “ADOMANI”) with a price target of $10.20. Based in Corona, CA, ADOMANI provides complete zero-emission electric and hybrid vehicle solutions to school buses and medium to heavy-duty fleet operators. The company’s solutions include the design, manufacture, and installation of patented, zero-emission electric and hybrid drivetrain systems for new school buses and medium to heavy-duty commercial fleet vehicles, as well as a line of conversion kits, which are designed to replace conventional drivetrain systems with hybrid or zero-emission systems. ADOMANI has the distinction of being the first Regulation A+ initial public offering on the Nasdaq. The company raised approximately $10mn in net proceeds in June 2017, which is being deployed to expand its sales team, dealer relationships, product offerings, and international presence.
Highlights from the report include:
Large Market Potential for Electric Vehicles in US, China
Although still in the early stages, the market for electric vehicles represents a fast-growing opportunity with massive potential. Global electric vehicles more than doubled in 2016 to reach 2mn units, according to the International Energy Agency (IEA). Key drivers of demand for the business include a desire to be in compliance with emission guidelines, subsidies that accelerate investments in energy efficiency, shifting customer preferences, and lower fuel and maintenance costs. ADOMANI will initially focus its efforts on the two largest markets for electric vehicles: North American and China. The company has reported encouraging interest and feedback from potential customers and partners, citing a pipeline of potential sales in North America over the next year in excess of $270mn in a presentation attached to its Form 1A filed with the SEC in March 2017. ADOMANI is just beginning to explore opportunities in China via its subsidiary Adomani (Nantong) Automotive Technology Co. Ltd, though we note that the electric vehicle market in China is approximately double that of the US.
Seasoned Management with Deep Experience in NA Bus Industry
We are impressed by the experience of the leadership team at ADOMANI as it strives to become a leading provider of electric vehicle solutions for commercial fleets and school bus operators. CEO Jim Reynolds heads a management team with deep experience that positions the company especially well to compete in the bus industry. Prior to leading ADOMANI, Reynolds served as CEO of A-Z Bus Sales, where he grew annual sales from $46mn to $120mn. COO Rick Eckert also brings highly relevant leadership experience to ADOMANI, having been General Manager of Operations at A-Z Bus Sales, and also serving as Co-Chair for the Blue Bird Dealer Service Council. We note that Blue Bird Corporation (BLBD) is the largest school bus manufacturer in the US and a flagship strategic partner for ADOMANI. In July, the companies disclosed they were working together to bring the Blue Bird Type D All-Electric School Bus to market in 2018.
Initiate Coverage with a Price Target of $10.20
We initiate coverage of ADOMANI with a price target of $10.20. We see ADOMANI as an intriguing company in the emerging high growth market for electric vehicles. In our view, the company offers a speculative, high risk / high potential reward conduit for gaining exposure to the large opportunity for electric school buses and commercial fleet vehicles in the US and potentially China.
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About ADOMANI, Inc.
ADOMANI, Inc. (ADOM) is a provider of zero-emission electric and hybrid vehicles and replacement drivetrains that is focused on reducing the total cost of vehicle ownership. ADOMANI helps fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price instability and local, state and federal environmental regulatory compliance. ADOMANI designs, manufactures, and installs advanced zero-emission electric and hybrid drivetrain systems for use in new school buses and medium to heavy-duty commercial fleet vehicles.
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
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