Written by Cláudio Afonso | LinkedIn | X
DA Davidson analyst Michael Shlisky slashed on Monday the firm’s price target on the electric and hydrogen truck maker Nikola to $4 from $12 following the third quarter results reported on the last day of October.
While maintaining a Neutral rating on the shares, Shlisky noted that Nikola continues to increase its deliveries, reaching 88 in the third quarter of the year, with expectations of over 100 deliveries in the current one highlighting the positive commentary on demand during the latest earnings conference call.
As of the time of writing, Nikola shares are trading 0.3% higher at $3.03.
In a research note published on Monday, the analyst cited concerns about the company’s cash balance following comments from CFO Tom Okray, who stated Nikola has a cash runway of ‘five to six months’ with a monthly burn rate of $30 million to $40 million.
Okray said the company is “working right now to try to raise the necessary capital to give us the runway to go much further into 2025.”
Last month, the company started a new round of layoffs affecting 135 workers — or about 15% of its staff —, less than one and a half years after cutting 23 percent of its workforce in Arizona.
The company reiterated its annual delivery guidance of 300 to 350 fuel cell trucks as it continues the process of returning the battery electric trucks to its customers.
Based on Friday’s closing price, Shlisky sees now an upside potential of 32% on the stock as it maintains a Neutral rating. The stock reached a new all-time low of $2.91 last week.
Last week, Bryan, Garnier & Co. analyst Paul Froment downgraded Nikola shares from Buy to Neutral, while setting a price target of $4.00.
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.
Written by Cláudio Afonso | LinkedIn | X
