Electric pickup truck start-up Lordstown Motors got a new Wall Street rating Friday, but Deutsche Bank’s lukewarm take on the company it isn’t likely to help the stock break out of its recent slump.
The new rating from analyst Emmanuel Rosner is Hold, with a new price target of $8 a share, far below the $10.55 where the stock is trading. Rosner believes Lordstown Motors (ticker: RIDE) has some positives, but “considerable uncertainty ahead” keeps him on the sidelines.
The company has an attractive market—light-duty pickup trucks which are big sellers in the U.S. Plus, Lordstown’s first product, the Endurance truck, has been well-received by fleet customers. (About half of light-duty trucks sold in the U.S. go to businesses.)
That’s the good news. Pickup truck competition is coming, though. Ford Motor (F), for instance, just made waves unveiling its all-electric F-150—which is due out just months after the Endurance goes on sale in late 2021. And the F-150 is priced below the Endurance.
In addition to growing competition, Lordstown also has run into production delays and pushed out its delivery guidance when the company reported first-quarter numbers earlier this week.
The new rating isn’t doing much to the stock in Friday trading. Shares are down a little, while the S&P 500 and Dow Jones Industrial Average are both up less than 0.5%. Most of the pain for investors has already happened. Lordstown stock is down about 67% from its 52-week high hit in September.
Lordstown isn’t a well-loved stock on Wall Street. Most analysts line up with Rosner: They aren’t so sure about what the future holds for the company. Including the new rating, four analysts rate shares Hold, three say Sell, and just one rates the stock a Buy. One out of 8, or 12.5%, of analysts recommending shares is far below the average 55% Buy-rating ratio for stocks in the S&P.
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May 28, 2021 at 10:56PM
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Lordstown Motors Stock Isn't Getting Any Help From Wall Street - Barron's
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