In an April 27 research note, Haywood Securities analyst Colin Healey reported that Exro Technologies Inc. (EXRO:CSE; EXROF:OTCQB), a Haywood 2021 Top Pick, signed an agreement with Vicinity Motor Corp. to test, validate and, potentially, use Exro's coil driver technology in Vicinity's electric buses.
"We consider this a key partnership with a higher profile bus maker and expect Exro's stock to respond well to the news," Healey wrote.
Healey relayed that Vicinity manufactures shuttle transportation vehicles for commercial and public use in Canada and the U.S. Its flagship vehicle is the Vicinity EV bus.
According to the agreement, explained Healey, Exro will provide Vicinity with a coil driver system and Vicinity will incorporate it into the powertrain of one of its buses. The vehicle company then will test and validate the technology with an eye toward deploying it in future Vicinity EV bus production.
According to Vicinity, Healey noted, Exro's coil driver technology offers what existing systems cannot, improved performance and efficiency, resulting in extended bus range.
"Today's news is important as it further accelerates Exro's path to commercialization of its coil driver technology," Healey wrote. He added that he expects the agreement will lead to commercial sales and greater exposure of the technology to prospective customers. The Haywood report was titled "Don't Miss the Bus on Exro's Coil Driver Technology."
Haywood has a Buy rating and a target price of CA$8 on Exro. "We continue to like Exro and, following the more recent weakening in the stock, we recommend investors continue to add to positions, taking advantage of the current discount to recent highs (trading in the $5.50-$6.50 range in February) as Exro progresses towards formal commercialization," Healey wrote. At the time of publication of the report, Exro's share price was CA$4; it currently is trading around CA$4.51.
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Disclosures from Haywood Securities, Exro Technologies Inc., April 27, 2021
Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Important Disclosures
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▪ Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Exro Technologies Inc. (XRO-V) in the past 12 months.
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