Microvast Holdings (MVST) Stock Forecast & Price Target

Microvast Holdings Inc. is expected to benefit significantly from the completion of its Huzhou 3.2 expansion, which is projected to add 2 gigawatt-hours (GWh) of annual production capacity by the fourth quarter of 2025, supporting growth expectations for 2026 and beyond. The company is also forecasting a positive adjusted EBITDA of $124 million for 2025, with expectations of surpassing $200 million by 2028, indicating strong operational performance. Furthermore, management has maintained a revenue outlook of $450-475 million for the year while raising gross margin expectations from 30% to 32%, highlighting improvements in profitability.

Microvast Holdings Inc. experienced a quarter characterized by lower-than-expected revenues, which raises concerns about the company's market penetration and order fulfillment capabilities. Although gross margins and adjusted EBITDA exceeded estimates, the revenue shortfall was attributed to a transition-related order pushout for a key customer, highlighting operational vulnerabilities. Additionally, the company's struggles in capturing the U.S. market signal potential challenges in future growth and overall competitiveness within the industry.