Nikola Initiated With A Hold At Deutsche Bank

Deutsche Bank analyst Emmanuel Rosner initiated coverage of Nikola (NKLA) with a Hold rating and $54 price target.

Investors have "a rare pure way to invest in zero-emission commercial trucks" with Nikola shares, although the stock's valuation now reflects much of the mid-term opportunity, without necessarily discounting the risks, Rosner said.

He estimates Nikola could sell over 15,000 trucks in 2025 and generate revenue of $4.6B with EBITDA of $546M, the analyst noted. While Nikola trades at an EV/sales multiple "about-in line" with Tesla (TSLA) and NIO Inc. (NIO), the company hasn't produced any truck so far and its factory isn't built yet, giving it "large execution risk," the analyst added.