Freedom lowers TP on clean-tech company Beam Global but keeps 'buy' after 3Q results

Freedom Broker has cut its target price on Beam Global by nearly 17% but continues to recommend buying the stock. Beam, whose EV charging systems are used by such customers as Google and NASA, has lost roughly half of its revenue amid Trump’s energy policy shifts and has gone into the red. To compensate, the company is pursuing new markets where it expects to compete for as much as $1 trillion in sustainable-infrastructure spending.

Freedom Broker now values shares of Beam at $2.50 per share, as outlined in a note seen by Oninvest. The downgrade puts the new fair value almost 17% below the previous target but still 39% above current levels. Yesterday, November 18, Beam stock closed down 1.1% at $1.80 per share.

Even with the revised target price, Freedom maintained its “buy” recommendation.

Analysts revised their valuation after Beam reported its third-quarter results. Revenue fell 50% year over year to $5.8 million. The company cited the U.S. federal government’s reversal of its plans to electrify its vehicle fleet as one of the main reasons.

Rolling back “green” policies was among Trump’s first moves after taking office. He froze the disbursement of federal funds from a $5 billion EV-charging program. At the same time, the General Services Administration’s Public Buildings Service – historically responsible for promoting green procurement – began large-scale cuts to climate-related programs following Trump’s inauguration in January.

Beam Global CEO Desmond Wheatley told Oninvest in an exclusive interview that he believes the moves will just set the U.S. back four years from the Chinese, without yielding any benefits.

Commercial customers helped soften the blow. They accounted for 82% of third-quarter sales versus 48% a year earlier. Still, that was not enough to offset lost federal contracts, Freedom said.

The steep revenue decline pushed Beam into a loss: the company posted a $4.9 million net loss versus a $1.3 million net profit a year earlier. The gross margin fell to minus 1% versus plus 11% in the third quarter of 2024.

Beam’s confirmed $8 million order book offers some visibility into its fourth-quarter and 2026 performance, the note said. Analysts also point to the company’s efforts to position itself for long-term growth by expanding its geographic footprint. In June, Beam announced a joint venture with the UAE’s Platinum Group to manufacture and sell its products across the Middle East and Africa.

"Our expansion into the Middle East, a market, which has announced it will invest $1 trillion in the next decade in sustainable infrastructure, has created new opportunities, not just for global growth, but also for a fantastic evolution of the uses of our products for drones and autonomous vehicles," Wheatley said in the third-quarter earnings release.

International markets accounted for 39% of year-to-date revenue, while commercial customers made up 67%, reducing the company’s reliance on U.S. federal clients, Freedom noted.

“Management views the current pause in federal spending on EVs as temporary and plans to rely on cost discipline and a debt-free balance sheet until pending orders are fulfilled and new regions and destinations begin to contribute more meaningfully,” the analysts wrote.

Wall Street largely shares Freedom’s view. According to MarketWatch data, four analysts currently rate Beam a “buy” versus one “hold.” Their average target price of $3.25 per share implies nearly 81% upside from the last close.

The AI translation of this story was reviewed by a human editor.