Written by Cláudio Afonso | LinkedIn | X
Baird analyst Ben Kallo has adjusted the firm’s outlook on Nikola shares, lowering the price target from $60 to $14 while maintaining an Outperform rating.
Despite this adjustment, Kallo remains optimistic about the company’s future. Based on the last closing price, the price target implies an upside potential of 74 percent.
In a new research note, Kallo highlighted that Nikola’s second-quarter deliveries surpassed expectations. The company sold 72 units of its Class 8 hydrogen fuel cell trucks, exceeding both the firm’s estimate of 55 units and the company’s guidance range of 50-60 units.
With the addition of the first-quarter sales of 40 units, Nikola’s hydrogen truck sales for the first half of the year reached a total of 112 units.
Liquidity remains a key focus for Nikola as the year progresses, with potential sources including capital market activities. The firm added that Nikola is steadily executing its turnaround strategy, which is crucial for sustaining its operations and growth.
Back in early April, Kallo reiterated his Buy rating on the shares with a $2.00 price target [equivalent to $60 following the 1 for 30 reverse stock split], citing strong delivery numbers. Nikola wholesaled 40 trucks in the first quarter, surpassing Baird’s estimate of 33 units, which reinforced the analyst’s positive outlook back then.
The firm’s initial coverage of Nikola shares started last January with an Outperform rating and a $2 price target before the reverse stock split. At that time, Baird recognized significant potential in the zero-emissions trucking market and believed that Nikola had found the right management team to capitalize on this opportunity.
Last Thursday, Nikola made headlines when Walmart Canada integrated the first Nikola hydrogen fuel cell electric semi-truck into its fleet, marking Walmart Canada as the first retail fleet in North America to operate such a truck.
In a new interview for the “Future Says” podcast, Nikola’s Global Head of Supply Chain Management, Pedro Garcia, anticipated that additional safety regulations will be implemented, necessitating industry-wide compliance and adaptation.
In a new interview on the “Cleared Hot Podcast”, Trevor Milton, the founder and former CEO of Nikola, broke his silence for the first time since his departure from the company.
In the in-depth interview, which took more than two and a half hours, the former chief executive addressed his legal battles, the pressures of leading a publicly traded company, and the personal challenges he faced during his tenure.
Last Thursday, Nikola announced that Walmart Canada has integrated the first Nikola hydrogen fuel cell electric semi-truck into its fleet. Walmart Canada is the first retail fleet in North America to operate a hydrogen fuel cell electric truck.
Last week, the company announced that its hydrogen fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs) have collectively surpassed 2.5 million miles driven across North America.
Written by Cláudio Afonso | LinkedIn | X
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The post Baird Cuts Nikola Price Target Despite Strong Q2 Deliveries first appeared on EV.