JP Morgan Initiates Coverage on Nikola, Sees Shares Slipping About 30%
It's been a busy month for Nikola (NASDAQ: NKLA). After completing its merger with VectoIQ Acquisition earlier this month, the stock received a vote of confidence from Cowen. On the other hand, Nikola received scrutiny from Citron Research, among others. The bears roared even louder today, as additional skepticism regarding the stock came from Paul Coster, an analyst at JP Morgan who initiated coverage on the stock with a neutral rating and a $45 price target. With shares opening at around $66 today, the Coster's price target represents downside of about 30%.
In Coster's opinion, Nikola's disruptive approach to the transportation industry "could be compelling" as it works to develop a hydrogen infrastructure to meet the needs of fuel cell-power electric trucks; however, Coster recognizes that considerable risk surrounds the company which doesn't currently generate revenue.
Image source: Nikola.
Source Fool.com