Nikola (NASDAQ:NKLA) is determined to turn the page on past challenges and establish itself as a leading player in the electric truck sector.
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This commitment was underscored during a recent fireside chat with D.A. Davidson analyst Michael Shlisky, where CEO Steve Girsky and President of Energy Ole Hoefelmann emphasized their strategic direction.
“Management was bullish on the FCEV’s uptime and fuel-economy performance vs. diesel in real-world operations, as well as the revenue prospects for 2025-2027 as diesel trucks turn more expensive and tougher to obtain,” Shlisky explained. “NKLA also reiterated that today’s investor in the company can win 3 ways: through the truck only, through the hydrogen only; or with both.”
As state and Federal regulations mandate fleets to cut emissions through 2027, the outlook for Nikola’s Class 8 truck could become more favorable. However, if success does not come its way via the truck it could materialize through its hydrogen-focused energy subsidiary, the HYLA brand. Should other FCEV brands take to the road, over time, its portfolio of fueling stations could yet prove to be successful. Conversely, should HYLA not manage to fully scale or should the company need to sell that business, the truck could still succeed. “NKLA would, of course, prefer the third option,” notes the analyst rather obviously. “Both groups solving the ‘chicken and egg’ problem for hydrogen fuel-cell trucks and turning profitable.”
Despite the positive talks, the analyst thinks Nikola’s funding picture remains cloudy, and there are other uncertainties to consider. “We like the upside vs. our current price target, but remain NEUTRAL amid risks such as funding options; hydrogen type & cost; and competition,” he summed up.
That price target is $1 and indeed does offer big upside of 97% for a stock rated as Neutral rather than a Buy. (To watch Shlisky’s track record, click here)
Amongst Shlisky’s colleagues, two analysts do consider NKLA shares a Buy and with the addition of 5 Holds, the stock gets a Moderate Buy consensus rating. The average price target is even higher than Shlisky’s objective; at $1.1, the figure makes room for 12-month returns of ~124%. (See NKLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
