Written by Cláudio Afonso | LinkedIn | X
Shares of Nikola are trading just above all-time lows on Friday as two analysts sharply cut their price targets for the electric truck maker, citing higher-than-expected cash burn rate and disappointing revenue.
The stock hit an all-time low of $3.72 per share on October 18 but saw a 57% rebound, nearing $6 in the following week. However, even after reaffirming its annual delivery guidance of 300 to 350 fuel cell trucks, Nikola’s stock has fallen 17% since it released the earnings results.
On Friday, TD Cowen analyst lowered the firm’s price target on the shares from $10 to $4, maintaining a Hold rating.
The analyst noted that the third-quarter cash burn outpaced projections, with management estimating just five to six months of operational runway at current spending levels.
Likewise, Baird analyst Ben Kallo reduced Nikola’s price target by 28.6%, from $14 to $10, while holding an Outperform rating. Kallo acknowledged Nikola’s progress in securing commercial traction but noted the company’s third-quarter earnings missed revenue expectations, partly due to a $7.7 million repurchase of 20 battery-electric trucks.
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.”
Written by Cláudio Afonso | LinkedIn | X
