Shares of Nikola (NASDAQ:NKLA) are surging at the time of writing. This comes despite once again postponing its annual shareholder meeting after falling short of the votes needed to greenlight a proposal to issue more shares and raise funds. The firm now plans to reconvene on August 3rd.
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Originally, the meeting was scheduled for June but was delayed as Nikola couldn’t garner sufficient support for its proposal. Under current legislation, the proposal needs approval from the majority of all outstanding common stock. However, an upcoming amendment that could take effect on August 1st would change this requirement to a majority of shares actually voted on the proposal. Nikola noted that if the meeting took place under this new proposed law, they would have received enough votes in favor of their capital raise.
Is NKLA a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Hold consensus rating on NKLA stock based on one Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $3.25 per share implies 125.69% upside potential.
