Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Nikola (NASDAQ: NKLA) have fallen since the company reported its Q2 earnings on Tuesday.
The company reported earnings per share of $0.20, below the consensus of $0.29. The electric vehicle firm said it was aiming to deliver pre-series Nikola Tre BEVs for use on public roads hauling customer freight in the second half of this year.
“Our team continues to work diligently with suppliers to offset the global parts and materials shortage, as well as work to grow the parts maturity level as we ramp up pre-series builds,” Nikola said in a statement.
Nikola's shares fell over 8% following the report, continuing the decline since the Justice Department charged its former CEO. However, on Wednesday, they did manage to regain 3% of those losses.
Since the Q2 earnings release, analysts have cut their price targets on the stock. Here's what they have had to say…
Wedbush analyst Dan Ives cut his price target to $10 from $13, stating that despite the report showing “tighter cost controls,” he believes “clear challenges remain” for the company.
BTIG analyst Gregory Lewis reduced the firm's price target to $16 from $18, keeping a Buy rating on the stock. Lewis said the move lower in Nikola's share price followed comments that management was cutting its 2021 revenue guidance.
On Wednesday, Deutsche Bank analyst Emmanuel Rosner lowered Nikola's price target to $15 from $16, maintaining a Hold rating following its Q2 results. Rosner stated that Nikola has “several areas of concern which the company must address as the year progresses.”
Nikola's shares are trading at $10.77 on Thursday, up 1.6%.
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