Written by Cláudio Afonso | [email protected] | LinkedIn | X
TD Cowen analyst Jeffrey Osborne lowered the price target on Nikola shares by 50 percent to $0.50 while maintaining a Hold rating.
The analyst mentioned the higher than expected free cash flow burn as the manufacturer reported adjusted EBITDA loss of $104 million and operating loss of $145.4 million.
In a new research note, the analyst said the first quarter “EBITDA missed [estimates] on higher COGS ” while “free cash flow burn was higher than expected”. Osborne noted that Profit & Loss guidance for the year “was removed” as the delivery guide for Nikola’s FCEV trucks is unchanged.
“Thomas Okra (new CFO) noted time needed to ramp volume and work with suppliers,” the analyst added.
“Nikola will now expand geographically beyond CA and Canada and target national accounts while being flexible on ASP to win initial deals. We’re lowering price target to $0.50 on 2x 2025E EV/sales,” he concluded.
Nikola published on Tuesday its financial results for the first quarter of year reporting a decline on total revenues and a non-GAAp net loss per share of $0.09. The company produced 43 trucks in the first quarter of which 40 were shipped.
In the first quarter, Nikola wholesaled 40 FCEVs, surpassing the high-end of the guidance range. This marks the second quarter of serial production of FCEVs for Nikola, bringing the total wholesaled FCEVs to 75.
Nikola’s market expansion includes the opening of HYLA hydrogen modular refueling stations in Ontario and near the Port of Long Beach, California, as well as HYLA’s first hydrogen refueling station in Alberta, Canada.
Steve Girsky, CEO of Nikola, emphasized the company’s focus on execution, stating, “We continue to move forward rapidly and execute our plans. And please keep that in mind – we are in the execution phase, not the planning or concepting phase.”
Written by Cláudio Afonso | [email protected] | LinkedIn | X
