Nikola stock drops after Wedbush's Ives cuts price target nearly in half.
Wedbush analyst Dan Ives chopped his price target nearly in half, citing concerns over execution and timing of company's "ambitious" goals. Ives kept is rating on the electric vehicle maker at neutral, which was raised from underperform in February, but slashed his price target to $13 from $25.
"Overall we still believe the company's EV and hydrogen fuel cell ambitions are hittable in the semi- truck market, although we still have clear concerns that the execution and timing of these ambitious goals stay on track over the coming years," Ives wrote in a note to clients. "Nikola is a story stock and 'prove me' name for now."
The stock has tumbled 28.1% year to date through Friday, while EV leader Tesla Inc. shares have gained 4.8% and the S&P 500 has advanced 11.4%.
Ives said he believes a lot of Wall Street's "hype" around the company has been taken out after the slimmed down partnership with General Motors Co., scratched plans for its Badger pickup and toned-down expectations.
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