Roth MKM downgrades Lion Electric to Neutral, cuts price target to 90c

As previously reported, Roth MKM downgraded Lion Electric to Neutral from Buy with a price target of 90c, down from $2. The firm notes Lion posted a 50%-plus Q2 revenue miss on a lull in EPA subsidy activity, plus headwinds for Canadian ZETF funding. Management initiated additional restructuring to lower expenses by $25M/year, including a 30% headcount reduction and planned sublease of excess real estate. Craig-Hallum believes internal visibility remains low and is incrementally cautious about rising political risk for continued support of the EPA Clean School Bus subsidies.