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Nikola’s news could “turn positive overall” next year, according to JP Morgan analyst Paul Coster.
With Nikola’s permission
Nikola, who is involved in a scandal, has to turn the corner.
This year,
Nikola
(ticker: NLA), a manufacturer of hydrogen fuel cell trucks, has seen a partnership with
General motors
(GM) went backwards, dismissed allegations of tampering with his technology, and abruptly relinquished his role at Trevor Milton, its founder and executive chairman.
Just last week, trash slid
Republic Services
(RSG) suspended ordering for 2,500 lorries.
The drama around “Tesla of Trucking” should end in 2021, as Nikola puts out work trucks and other evidence that her technology is capable of working, according to JP Morgan analyst Paul Coster .
Nikola stock has been on a wild ride since their first public outing in June, when it hit a 52-week high of $ 93.99. Nikola shares have fallen to around $ 14 since then. The stock is up strongly on Monday, jumping more than 9% in early trading. They have gained 42% this year, compared to the 15% gain in the
S&P 500 index.
Coster wrote in a note on Monday that he expects the news of Nikola to “turn generally positive,” as he cut his price target to $ 35 from $ 40 to “reduce the risk of execution.” is associated with the emergence of a tarnished brand. ”
Analyst says Nikola has “cleaned up a house” by the end of the year, down 50% in the past month after canceling partnerships with GM and Republican.
Coster said the partnerships were quickly tossed around by founder Nikola Milton and provided resources for non-strategic ventures.
However, Nikola was encouraged to get support from GM, which intended to take an equal part and help build her electric pickup truck.
Just days after the GM partnership announced this fall, short-selling analyst firm Hindenburg Research released a report that said Nikola was easing its technology, citing a 2016 video that showed Nikola’s truck crashing. going down a slope (but not under power). Nikola has denied the allegations. Milton subsequently left, and the GM partnership was cut off in November.
However, Nikola has made some progress in other areas. This month they entered into an agreement with the Public Service Utility to lock in the electricity it needs for a proposed fuel network.
In addition, Coster says, two of Nikola Tre ‘s electric semitruck are now in Arizona, and two more are scheduled for delivery in January. Nikola could have nine trucks to test by the end of the first quarter and a commercial opportunity on the Tre at the end of 2021.
“We expect Nikola to post a video of active Tre in January,” Coster said in his note maintaining the stock’s fat level. “We will be looking for a steady stream of updates for the truck in 2021.
“We expect a lot less drama in 2021.”
Write to Liz Moyer at [email protected]