Nikola Corporation (NASDAQ: NKLA) shares surged almost 7% on Wednesday following a highly optimistic call from a Baird analyst.
Ben Kallo, a seasoned analyst at Robert W. Baird, initiated his coverage of the burgeoning electric vehicle firm yesterday, bestowing it with an ‘outperform’ rating. His ambitious price target of $2.0 implies a potential upside of 200% from its last closing price.
The analyst harbors a favorable perspective on Nikola’s stock, primarily influenced by the prospective catalysts he envisions in its trucking and energy sectors.
Ben Kallo expressed his optimism about the company’s future, saying,
“We see significant potential in the market for zero-emissions trucking and believe NKLA has finally found the right management team to capitalize on the opportunity.”
Nikola is scheduled to announce its fourth-quarter financial results next month. The consensus anticipates a loss of 17 cents per share, reflecting a significant improvement from the 46 cents per share loss reported in the same period last year.
NKLA Expects Over $500M Expenditure This Year
Ben Kallo expects Nikola will appoint a new Chief Financial Officer in the upcoming weeks.
The Baird analyst holds a notably positive outlook on Nikola’s stock. He maintains that the company’s unique design and proprietary software give it a competitive advantage over traditional diesel trucks, a point he elaborated on in his research note from Wednesday.
Kallo’s positive stance on NKLA stock is further reinforced by anticipated enhancements in production and the introduction of incentive schemes in emerging markets. He also foresees that hydrogen sector collaborations and infrastructure investments will further boost the stock’s value.
Kallo projects that Nikola Corporation will incur an approximate expenditure of $540 million in 2024.
Nikola Corporation (NASDAQ: NKLA) Stock Movement
NKLA stock witnessed a 6.57% surge on Wednesday. The trading volume for the day was notably high, with around 120.29 million shares changing hands, surpassing the average daily trading volume of 90.14 million shares.
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