NAKD Stock Forecast: Ambitious Sales Targets Key to Potential Gains

    NAKD Stock Forecast: Ambitious Sales Targets Key to Potential Gains
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    The forecast for NAKD stock reflects a company searching for direction after its parent company, Naked Brand Group, went through a SPAC process and rebranded as Cenntro Electric Group, now trading under the symbol CENN. However, some charts still show the NAKD symbol, so this forecast will use NAKD for clarity.

    In 2021, Naked Brand Group acquired Cenntro Electric Group Limited to avoid being delisted from the Nasdaq, as the former apparel company had struggled for years to maintain the minimum bid price of $1. This acquisition, which shifted the company’s focus to producing electric vehicles, briefly boosted the stock price to $14 in November 2021. However, the stock has since returned to struggling to stay above the $1 mark. Cenntro manufactures electric vehicles primarily for commercial and municipal purposes, delivering 1,623 vehicles in 2021. The company has ambitious goals to deliver 21,500 vehicles in 2022 and 74,800 in 2023.

    These projections translate to potential revenues of $506 million in 2022 and $2.1 billion in 2023, which are lofty targets requiring a significant increase in vehicle sales. Commercial fleets typically purchase multiple vehicles at once, which could help Cenntro achieve these goals in the growing EV market, projected to have a compound annual growth rate (CAGR) of 26.6% over the next decade. The company’s ability to meet these targets will be critical in determining whether it can fulfill its CEO’s optimistic stock forecasts.

    Currently, the stock price of Naked Brand Group is relatively flat, with low trading volume. A recent 10.92% gain moved the stock off its all-time lows. If this upward movement continues, the stock could target the resistance level at 2.19, formed by the previous lows from December 2020 and a high in October 2020.

    Should the price continue to rise, the next resistance levels would be at 3.67, with more aggressive targets at 4.99 and 7.24, but these would require significant bullish momentum. On the other hand, if market participants view any rallies as opportunities to sell, the stock could break below the 0.94 support level, leading to new lows. Alternatively, the stock may trade in a range between 0.94 and 2.19 in the short term if the resistance at 2.19 holds without a strong enough pullback to weaken the support level.