Nikola's Positive Outlook and Hydrogen Truck Sales Surge
Key Ideas
- Baird analyst adjusted Nikola's price target down to $14 but maintained an Outperform rating, citing optimism for the future with a 74% potential upside.
- Nikola exceeded expectations in the second quarter by selling 72 Class 8 hydrogen fuel cell trucks, reaching a total of 112 units in the first half of the year.
- Liquidity focus remains for Nikola with execution of turnaround strategy crucial for sustainability and growth.
- Recent integration of hydrogen fuel cell electric semi-truck into Walmart Canada's fleet marks a significant milestone for Nikola in North America.
Baird analyst Ben Kallo has adjusted the firm’s outlook on Nikola shares, reducing the price target to $14 while keeping an Outperform rating. Despite this adjustment, Kallo remains optimistic about Nikola's future, indicating a 74% potential upside from the last closing price. Nikola surpassed expectations in the second quarter by selling 72 hydrogen fuel cell trucks, totaling 112 units in the first half of the year. The company's focus on liquidity and the steady execution of its turnaround strategy are vital for its sustainability and growth. Walmart Canada recently integrated the first Nikola hydrogen fuel cell electric semi-truck into its fleet, making it the first retail fleet in North America to operate such a vehicle. Additionally, Nikola's hydrogen and battery electric vehicles have driven over 2.5 million miles in North America. In interviews, Nikola's executives discussed safety regulations, compliance, and the personal challenges faced by the company's former CEO.