Written by Cláudio Afonso | LinkedIn | X
Bryan, Garnier & Co. analyst Paul Froment released a new research note on Thursday downgrading Nikola shares from Buy to Neutral, while setting a price target of $4.00.
The stock reached a new all-time low of $2.91 on Wednesday, bringing year-to-date losses to 88.1%. Several Wall Street analysts sharply cut their price targets for the electric truck maker, citing higher-than-expected cash burn rate and disappointing revenue.
Six months ago, in mid-May, the firm initiated coverage on the EV stock with a “Buy” rating and a $1 price target, which, following Nikola’s 1-for-30 reverse stock split in June, now equates to $30 per share.
In a new research note, the analyst said it sees a “challenging way forward” for the electric and hydrogen truck maker.
In December 2023, Bryan, Garnier & Co acted as a joint bookrunner, helping deliver a combined offering of $100 million in equity and $175 million in green convertible bonds on Nasdaq.
During the conference call, Nikola‘s CFO Tom Okray said the company has a cash runway of “five to six months,” considering a monthly burn rate of $30 million to $40 million.
Okray added that the company is “working right now to try to raise the necessary capital to give us the runway to go much further into 2025.”
At the time, the transaction consisted of $175 million in Green Convertible Senior Notes due 2026 at 8.25% annual interest rate and 20% premium to the equity offer price and 133 million shares at $0.75 per share.
Founded in 1996, Bryan Garnier is a UK-based independent investment bank for European healthcare and technology-led companies and their investors.
Shares of Nikola are trading just above all-time lows on Friday as two
Nikola reiterated its annual delivery guidance of 300 to 350 fuel cell trucks.
Written by Cláudio Afonso | LinkedIn | X
