Gogoro (NASDAQ:GGR) went public on April 5 on the U.S. stock exchange, after it merged with special acquisition company Poema Global. The Taiwan-based electric scooter hopes to raise $335 million after the operation. GGR stock reached a high of $17.59 on April 5 before plummeting to below $7 on April 22. But the innovative company is set for high growth in the next two years that might deliver robust gains.

According to Meticulous Research, the electric scooter market value is forecasted to grow at a fast pace in the next years, reaching a value of $644.5 billion by 2028 and delivering a compound annual growth rate of 29.4%. The strong electric scooter growth should support GGR’s business prospects in the next years. However, analysts are forecasting GGR’s top line to expand 51% in 2022 to $499 million and 72% to $859 million in 2023, demonstrating a vigorous buoyancy in GGR’s equity story.

While these figures will please GGR’s shareholders, any growth sluggishness will be penalized by market participants. Moreover, with this rapid top-line growth, GGR is estimated to break even in 2023, turning an expected profit of $2.47 million.

The newly listed company does not have a consistent track record, and the risks of disappointing analysts’ estimates are high at this stage. In addition, current equity market conditions are unfavorable for profitless stock, and the bearish momentum seen since its listing should not take investors by surprise.

Original article: https://www.nasdaq.com/articles/newly-listed-electric-scooter-leader-gogoro-is-a-long-term-buy