Analyst Scott Buck of H.C. Wainwright reiterated a Buy rating on Worksport, retaining the price target of $11.50.
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Scott Buck has given his Buy rating due to a combination of factors that highlight Worksport’s promising financial and strategic position. The company’s recent preannouncement for the second quarter of 2025 showed significant revenue growth and margin expansion, which suggests a strong sales strategy and potential for long-term profitability. The revenue for 2Q25 was reported at $4.1 million, marking an 83% improvement from the previous quarter, and the gross margin increased to 26%, surpassing expectations.
Additionally, Worksport’s upcoming product launches, including the SOLIS Solar Tonneau Cover and COR Portable Energy System, are anticipated to drive further revenue growth. Despite a short-term market decline, Buck views the company’s trajectory positively, with a price target of $11.50, representing a substantial upside from current levels. The valuation is supported by a 2.0x EV/revenue multiple, consistent with industry peers, and the expectation of continued revenue growth and operational leverage. However, potential risks include capital dilution, industry competition, and execution challenges.