Regarding Nikola (NASDAQ:NKLA) as the bargain-basement knockoff of Tesla (NASDAQ:TSLA) isn’t without merit. Yet Nikola made big gains today as a new analyst stepped in and didn’t immediately advise investors to run for the exits.
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The latest analysis comes from Dillon Cumming of Morgan Stanley. Though Cumming didn’t immediately step in with a Buy, he did step in with a Hold. That was certainly better news than it might have been. Cumming made a good case for his rating. An outside viewer would have to be willfully blind not to see the advances that Nikola has made of late. However, execution risk is still quite high, so it’s possible that future advancements don’t materialize.
It also doesn’t help that Nikola has so many competitors in the field. Its peers include companies like Tesla, who pretty much established this as a viable industry, along with Chinese EV makers and legacy automakers such as Ford (NYSE:F) and General Motors (NYSE:GM).
Yet even as Cumming keeps his distance, other analysts are more involved. Currently, analyst consensus calls Nikola stock a Moderate Buy with an average price target of $4 per share, implying 129.23% upside potential.