Morgan Stanley analyst Adam Jonas downgraded Li-Cycle (LICY) to Underweight from Equal Weight with a price target of $4, down from $7. Electric vehicles, or EVs, are passing from acute under-supply to potential over-supply and Tesla’s (TSLA) recent price cuts "are just the latest sign the EV market may be entering the ‘shake-out’ phase," the firm tells investors. Morgan Stanley argues that shorter delivery times, price cuts, and falling used values "mark a new ‘reset’ chapter for EVs," which prompts them to recommend reducing exposure across the EV portfolio.
Published first on TheFly
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