Nikola price target raised to $3 from $1 at DA Davidson

DA Davidson raised the firm’s price target on Nikola to $3 from $1 but keeps a Neutral rating on the shares ahead of its Q2 results. The company’s deliveries were “no mystery” in what has been a “busy quarter” as Nikola has also announced a reduction in headcount and other cost cuts that are expected to reduce annualized cash usage below $400M in 2024, the analyst tells investors in a research note. The firm adds however that while there is “a lot to like”, Nikola trades at enterprise value to sales multiple of 2.5-times – in line with its peers.