Yahoo Finance Lotus Technology Inc. (NASDAQ:LOT): Are Analysts Optimistic?
We feel now is a pretty good time to analyse Lotus Technology Inc.'s (NASDAQ:LOT) business as it appears the company may be on the cusp of a considerable accomplishment. Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. The US$6.4b market-cap company announced a latest loss of US$757m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Lotus Technology's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Lotus Technology
According to some industry analysts covering Lotus Technology, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$141m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Lotus Technology's upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Lotus Technology currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Lotus Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Lotus Technology's company page on Simply Wall St. We've also put together a list of important aspects you should further research:
Historical Track Record: What has Lotus Technology's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Lotus Technology's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
