Nikola might fireplace off capital elevate in again of the yr

Digitally enhanced shot of a graph showing the ups and downs shares on the stock market


JPMorgan weighed in on Nikola Company (NASDAQ:NKLA) with the corporate’s earnings report approaching.

The agency thinks the quarter typically tracked to expectations and expects the prior full-year steerage issued for income, margins and shipments to be reiterated.

Analyst Invoice Peterson was warned a possible capital elevate within the again half of the yr could possibly be required to fund the corporate’s 2023 marketing strategy. The elevate is seen as mandatory in a crucial yr for NKLA because it appears to be like to construct scale in its BEV enterprise and launch its FCEV providing.

“Whereas we may see swift detrimental inventory response to a capital elevate, we expect traders might finally view a elevate positively because it removes a degree of uncertainty within the enterprise.”

Peterson and crew stated they might not be shocked to see important volatility in shares over the following few years. The agency stored a Impartial ranking on NKLA and established a December 2023 worth goal of $7.50.

Shares of NKLA rose 0.18% premarket on Wednesday to $5.65 vs. the 52-week buying and selling vary of $4.43 to $15.56.

The In search of Alpha Quant Ranking on Nikola flipped to Promote from Maintain on June 22.

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