What is Ebusco's expectation?
After a series of problems, it is time for Ebusco to put that period behind it. With the shareholders' expressed confidence and the appointment of the new CEO, there are positive signs. The company is focusing on designing electric buses and is less focused on producing them itself.
The outlook for Ebusco in 2024 is optimistic, despite the challenges of the past year. The main outlook is:
- Ebusco expects to achieve sales of more than €325 million in 2024, up significantly from €102.4 million in 2023. This is partly supported by a growing order book that rose to 1,719 buses in 2023.
- Ebusco plans to reduce personnel and operating costs in 2024. The modified assembly strategy, in which production is partly outsourced to partners, should ensure a more predictable production process and lower costs
- Ebusco aims to achieve positive EBITDA by the end of 2024, with profitability expected mainly in the second half of the year. This is related to the expected recovery in production rates and improved operational efficiency
- Ebusco continues to work on further optimizing the Ebusco 3.0 model, which is known for its low energy consumption (0.65 kWh per kilometer). The company expects that this model, along with other innovations, will contribute to its position in the zero-emission bus market
- With the new production site in Rouen and a stronger focus on productivity improvements, Ebusco hopes to further strengthen its financial performance and market presence in 2024.
- Ebusco's trajectory could potentially recover if the company succeeds in reducing costs and delivering on its positive outlook for 2024, including meeting revenue targets and achieving positive EBITDA.
What is the technical scenario for Ebusco?
For this, we look at the chart over the past year. The share price has risen sharply this week after it was announced that the issue has a high probability of success. At the time of writing, Ebusco is already trading at €4.35, up a quarter from yesterday's closing price.
The most likely scenario is a so-called relief rally. The problems of the past seem to be under control and possibly even largely over. A more positive wind seems to be blowing through the company. It doesn't take a whole lot at this price level for a significant recovery in percentage terms. Our mathematical system indicates a rise that could lead to the €12.50 to €16 zone. However, we have to give Ebusco time and the ride to this zone does not go in a straight line. The presentation of the annual figures on March 26, 2025, will reveal much about how the plan develops. Ahead of the figures and their commentary, Ebusco's share price may already recover to the stated price target.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.