Wall Street Tells Investors Nikola Stock Has Room to Run
Pumping the brakes on the stock's wild ride this past month, investors have sent shares of Nikola Corporation (NASDAQ: NKLA) lower by more than 20% over the past five days as, among other things, news hit that investors could soon suffer dilution. Wall Street, however, thinks that shares are bound to bounce higher. Jeffrey Osborne, an analyst at Cowen, has initiated coverage on the stock, assigning an outperform rating and a $79 price target.
For Osborne, Nikola's stock represents an "intriguing investment opportunity." In a research note to investors, Osborne notes that by using a one track platform, two power train options, and gaining "optionality" in servicing the powersports, pickups, and autonomous vehicles markets, the company is reducing the risk it will face as it scale up production of its vehicles in 2021.
Image source: Nikola.
Source Fool.com
