NKLA), boring is one description that cannot be attached to the company and its assorted shenanigans.” data-reactid=”12″>Whatever your opinion on EV truck maker Nikola (NKLA), boring is one description that cannot be attached to the company and its assorted shenanigans.
After inking a credibility boosting deal with auto giant General Motors last week, the bears came out dancing, after a withering report from Hindenburg Research accused the company of fraudulent activites. The euphoria was replaced by alarm as reflected by the stock’s steep decline. It now turns out the US Securities and Exchange Commission (SEC) is looking into the allegations, which no doubt will further fan the flames of controversy surrounding Nikola and headline grabbing founder Trevor Milton.
Daniel Ives, however, stands up in Nikola’s defense.” data-reactid=”14″>Wedbush analyst Daniel Ives, however, stands up in Nikola’s defense.
“While we look forward to management addressing some of these issues, we continue to believe seeing the forest through the trees that Nikola is a story stock now and it’s all about execution looking ahead through 2023,” Ives said. “If Trevor and the team can successfully build out its Arizona factory, morph prototypes into models (both on Badger and trucking front), lay the groundwork for its charging network, and catalyze delivery trucking orders with an attractive gross margin structure, then the opportunity for NKLA is massive and the stock will reflect this dynamic.”
While admitting there is “much wood to chop” for Nikola to prove its doubters wrong, the analyst also believes the GM deal is a “huge shot in the arm” and gives credence to the company’s stated mission to “transform the transportation/trucking industry by offering both pure electric and hydrogen electric powertrains.”
click here)” data-reactid=”21″>However, Ives stops short from recommending investors pile in just yet, calling Nikola a “prove me” stock. To this end, Ives rates NKLA a neutral (i.e Hold) along with a $45 price target. Still, there’s room for 37% of upside from current levels, should Ives’ target materialize over the following months. (To watch Ives’ track record, click here)
See Nikola stock analysis on TipRanks)” data-reactid=”22″>So, that’s the Wedbush view, what do other Street analysts currently think of Nikola’s prospects? The stock has 2 Buy recommendations and 3 additional Holds which add up to a Moderate Buy consensus rating. With a $55 average price target, the analysts forecast shares appreciating by 55% in the year ahead. (See Nikola stock analysis on TipRanks)
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