Wedbush analyst Daniel Ives upgraded Nikola (NKLA) to Neutral from Underperform with a price target of $25, up from $15. Most of the negative catalysts have now played out, Ives tells investors in a research note.
The analyst's main concerns on Nikola were centered on the shifting General Motors (GM) partnership, Badger "hype" and execution risks. Ives sees a more balanced risk/reward looking forward, however, and believes Nikola's electric vehicle and hydrogen fuel cell ambitions are attainable in the semi-truck market.
Further, the Biden administration and Democratic Senate's green initiatives "will be massive" around electric vehicle and hydrogen over the coming years and could significantly accelerate Nikola's build-out ambitions, says the analyst.
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