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NAKD Stock Forecast: Ambitious Sales Targets Key to Potential Gains

Spell Token Price Prediction
Spell Token Price Prediction

The NAKD stock forecast is that of a stock trying to find some direction after the Naked Brand Group, the parent company, went through a SPAC process and rebranded to the Cenntro Electric Group. The rebranded company has a new symbol known as CENN, but some charts retain the NAKD symbol. For clarity, this NAKD stock forecast will also retain this symbol in providing the actionable outlook for this stock.

The Naked Brand Group acquired the Cenntro ELectric Group Limited in 2021 to prevent it from being delisted from the Nasdaq. The former apparel company had flirted with delisting on the Nasdaq for several years due to its inability to meet the minimum bid price requirement of $1.

NAKD latest news

Its move on Cenntro Automotive to produce a company that now makes electric vehicles produced a jump in its share price in November 2021. However, this price appreciation to $14 has given way to the previous situation where the stock is struggling to hang on to a bid price above $1. Cenntro makes commercial and municipal-purposed electric vehicles. It delivered 1,623 of them in 2021 and, in a recent statement, said it hoped to deliver 21,500 in 2022 and 74,800 in 2023.

These sales projections translate to revenues of $506m and $2.1bn, respectively. These are truly ambitious targets that require the company to sell 50 times as many EVs as it currently does. What may help this cause is that commercial fleets tend to buy several vehicles at once instead of regular passenger vehicles that constitute a single order or two per customer.

This is a growing segment in the EV market with a CAGR of 26.6% over the next decade. The earnings performance will determine whether the company can rise from the ashes and fulfill its CEO’s bullish NAKD stock forecasts.

NAKD Stock Forecast

The Naked Brand Group share price action is as flat as it could be, with low volume. The 10.92% gain on the day took the stock off its all-time lows. A continuation move from this bounce targets the 2.19 resistance barrier, formed by the previous lows of 15 December 2020 and the last high at 1 October 2020.

If the price advance continues, the 3.67 resistance barrier becomes the next target in line. 4.99 and 7.24 are aggressive targets to the upside, and they only become viable if there is aggressive action from the bulls to drive the price higher. 

Conversely, suppose the market sees any rallies as potential points for initiating new sell orders. In that case, the chances of the price breaking the 0.94 price support to form new lows rise considerably. We could also see a situation where the price may range trade between 0.94 below and 2.19 above in the short term if there is rejection at the latter without a sustained pullback that is strong enough to degrade the immediate support. 

NAKD: Daily Chart

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