What took site
Shares of electrical-truck commence-up Nikola (NASDAQ:NKLA) were greater on Monday. A Wall Avenue analyst initiated coverage of the corporate gradual final week with a bullish existing.
As of 11: 00 a.m. EST, Nikola’s shares were up about 6.9% from Friday’s closing tag.
Loop Capital analyst Jeffrey Kauffman initiated coverage of Nikola final week, ranking the stock a consume and surroundings a $35 tag target for its shares.
Kauffman wrote that the heavy-truck industry’s transition from diesel to electric energy over the subsequent decade is now not a seek records from of if, but when. He acknowledged that whereas Nikola’s founder can also private “over-hyped” the corporate’s technology leading into and after its public-market debut, the corporate really does private psychological property which would perchance be gorgeous to companions.
No topic the smartly-publicized scandals surrounding Nikola, its Tre electric semi will commence transport subsequent year. Image source: Nikola.
Kauffman feels that with its companions’ aid, Nikola’s heavy trucks will commence to hit the road over the subsequent two years, however the allegations of exaggerated technology and the departure of founder Trevor Milton in September.
While Nikola’s partnership with Customary Motors (NYSE:GM) is restful in negotiation, the corporate has already signed provides with industry heavyweights, along side truck-maker CNH Industrial (NYSE:CNHI) and dealer Robert Bosch. Provided that and the stock’s fresh retreat following the events that resulted in Milton’s departure, Kauffman feels that the likelihood-to-reward ratio is “better balanced” for auto investors procuring for now.
John Rosevear owns shares of General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.