Nikola Stock Slightly Up; Earns an Upgrade to “Buy” at BTIG

Nikola stock rises and so does the new anticipated focus on hydrogen fuels.

Nikola Corporation (NASDAQ:NKLA) is providing a purchasing opportunity for investors relying on a greater emphasis on the possibilities of hydrogen energy, according to BTIG analyst, Gregory Lewis.

Although the automakers battery electric vehicles (BEV) now receive most of the attention, according to Lewis, its hydrogen fuel cell electric trucks, which are scheduled to begin shipping in late 2023 or early 2024, have the most growth potential. Should the company be able to execute, there is sizable potential as the industry is still in its early stages. According to Lewis, the BEV industry is now undervalued.

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He stated, We estimate the value of the Tre BEV business at $9-$10/share, which, with the company selling at around $5, signals upside in the BEV business, which has at least partially been de-risked as Tre BEV deliveries have commenced. We see that with three BEVs currently on the road, the challenging phase of ramping up production, raising margins, and gaining market share has begun (we anticipate positive gross profit margins somewhere in 2024).

Meanwhile, he suggested that the hydrogen industry be viewed as a good call option. Lewis said that the company is currently worth $3 per share, but that it has room to grow as it builds up its infrastructure and as governments and investors increasingly turn their attention to hydrogen.

Lewis added, We expect hydrogen to grow its proportion of the global energy mix over the next few decades given the incapacity of electricity to decarbonize heavy sectors and long-distance transportation. The economic climate and political assistance will determine the slope of that acceleration.

Nikola stock prediction

Lewis changed Nikola stocks rating to Buy and set a price target of $12, indicating a potential gain of more than 100% for the shares. The price of Nikola stock (NASDAQ:NKLA) increased by 1.99% in substantial premarket trade.

Featured Image- Megapixl @Timonschneider

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Author: Jowi Kwasu
Market Jar Media Inc.
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No PARAGON CHRONICLE journalist was involved in the writing and production of this article.