What happened Shares of Canadian electric bus manufacturer Lion Electric (NYSE: LEV), which recently went public through a special purpose acquisition company, roared 7% higher through Tuesday's close. After the close of trading on Monday, investment bank CIBC initiated coverage of Lion Electric with an outperformer rating and a $20 price target that implies the stock could nearly double over the next year. Image source: Getty Images. So what As TheFly.com reported, CIBC thinks that Lion Electric has a first-mover advantage in electric buses, and is "well positioned to quickly ramp up to meet growing demand." And while not everyone might agree with the idea that Lion is the first mover in electric buses, CIBC still thinks the stock is a good place to look for investors wanting exposure to EVs. Now what I'd only add one caveat: With its stock now valued at $2.35 billion after today's run-up, Lion Electric shares sell for roughly 60 times trailing sales (and the company lost $285 million last year). When you consider that rival bus maker Blue Bird (NASDAQ: BLBD), which is also going electric, sells for just 0.7 times sales and is profitable besides, Lion Electric stock looks just a wee bit overvalued to me. 10 stocks we like better than The Lion Electric CompanyWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and The Lion Electric Company wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source