Needham Assigns a Buy Rating to Hyliion Holdings (HYLN)

Some of the recent commercial collaborations, backed by bullish analyst ratings, make Hyliion Holdings Corp. (NYSE:HYLN) one of the 15 most promising small-cap industrial stocks under $10. On June 10, Sean Milligan from Needham assigned a Buy rating to Hyliion Holdings Corp. (NYSE:HYLN) while setting a $9 price target. The analyst expects the company to transition from the development phase to the commercialization of its Karno power module over the next 12 months.

According to Milligan, Karno is a linear generator platform that would achieve best-in-class fuel flexibility, emissions, noise levels, siting requirements, electrical efficiency, and maintenance cycle characteristics. The operational capabilities have the potential to position the platform as a disruptor within bring-your-own power end markets.

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Back on May 19, Hyliion Holdings Corp. (NYSE:HYLN) announced a collaboration with the U.S. Navy’s Office of Naval Research and the Defense Advanced Research Projects Agency. Under this joint initiative, the military has designated the USX-1 Defiant to serve as the primary testing platform for the company’s KARNO power generation systems.

The preliminary sea trials are receiving financial backing through an Office of Naval Research development program, which is specifically designed to evaluate and integrate KARNO Cores to supply electrical power aboard naval ships.

Hyliion Holdings Corp. (NYSE:HYLN) builds power generators that carry mobile and stationary applications. Its core power-generating offering is KARNO Power Module, which is entirely fuel-agnostic. It utilizes conventional fuel sources such as waste fuels, diesel, zero-carbon fuels, natural gas, and ammonia for power generation.

While we acknowledge the risk and potential of HYLN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HYLN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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