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Nikola Jumps As Analyst Backs Buy Rating But Warns On 'Fatal' Risk
Nikola (NKLA) and General Motors (GM) continue talks to close on a manufacturing partnership, which a Wall Street analyst called critical to the embattled EV startup's prospects. Nikola stock rallied.
JPMorgan analyst Paul Coster reaffirmed Nikola stock at overweight with a 41 price target. But that could change "in a hurry" if the company fails to execute to plan, he warned.
"The GM partnership deal is the most important near-term catalyst," he wrote in a note late Wednesday. "Failure to consummate the GM deal would be a fatal blow for the Badger initiative, but a serious blow to the more important truck initiative too, in our view."
Coster calls Nikola a "story stock" leveraging higher adoption of electric vehicles. He finds Nikola's partnership model remains compelling, while noting execution and competitive risks.
"For now, the GM partnership is a stress-test for the company... GM's withdrawal would be a major collateral blow to Nikola's time-line, margin structure, and truck brand, " Coster wrote....
https://www.investors.com/news/nikola-st...src=A00220
![[Bild: NKLAc1dl1711.png]](https://www.finviz.com/publish/100120/NKLAc1dl1711.png)
Nikola (NKLA) and General Motors (GM) continue talks to close on a manufacturing partnership, which a Wall Street analyst called critical to the embattled EV startup's prospects. Nikola stock rallied.
JPMorgan analyst Paul Coster reaffirmed Nikola stock at overweight with a 41 price target. But that could change "in a hurry" if the company fails to execute to plan, he warned.
"The GM partnership deal is the most important near-term catalyst," he wrote in a note late Wednesday. "Failure to consummate the GM deal would be a fatal blow for the Badger initiative, but a serious blow to the more important truck initiative too, in our view."
Coster calls Nikola a "story stock" leveraging higher adoption of electric vehicles. He finds Nikola's partnership model remains compelling, while noting execution and competitive risks.
"For now, the GM partnership is a stress-test for the company... GM's withdrawal would be a major collateral blow to Nikola's time-line, margin structure, and truck brand, " Coster wrote....
https://www.investors.com/news/nikola-st...src=A00220
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