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June 22, 2020, 11:23 a.m. EDT

Nikola on road to 'disrupt transportation,' JP Morgan says

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By Claudia Assis

NKLA

Nikola Corp. /zigman2/quotes/208704275/composite NKLA -25.82% is "poised to disrupt the transportation industry," analysts at J.P. Morgan said in a note Monday. The analysts started covering the stock at their equivalent of hold with a price target of $45, implying a 31% downside from Monday's share price. The Arizona-based company's business model -- fast deployment of hydrogen infrastructure and fuel cell-powered vehicles for use in long-haul trucking -- could be compelling, but risks are high for a company that hasn't had revenue yet, the analysts said. Moreover, the stock, which has gained nearly 50% in the past three months, is "fully valued" at the moment, they said. "Nikola's market opportunity is immense," with the company estimating the long-haul trucking industry at about $600 billion, including vehicle cost, fuel, service and maintenance relating to an estimated seven million trucks in service.

/zigman2/quotes/208704275/composite
US : U.S.: Nasdaq
$ 21.15
-7.36 -25.82%
Volume: 48.00M
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.80 billion
Rev. per Employee
N/A
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