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“Costco poses some threat to Amazon”



TipRanks

You don’t need to grab the falling knife of the workhorse, says an analyst

On Tuesday, the wheels were removed from the bull carriage for Workhorse (WKHS). After several delays and months of speculation, the US Postal Service has finally decided who will get the coveted contract to renew its aging fleet. This was not Workhorse. The 1

0-year, $ 482 million contract was awarded to Oshkosh, who will now be responsible for assembling NGDV 50,000 to 165,000 (a next-generation delivery vehicle). Investors in the launch of an electric van, left discouraged and deflated, reduced their shares by 52% in the last two trading sessions. The rejection was a huge blow to Workhorse, who was considered the host for the award. It was expected to seriously increase its production number, the contract was seen as a major catalyst for the company’s ejection forward. Now what? Colliers analyst Michael Schlisky says “investors may have been bitten by a snake for a while.” “The important thing,” says the analyst, “was that we never included the USPS RFP (request for proposal) in our evaluation of WKHS, simply because the reward was always uncertain; as such, we do not change our estimates at this time. “However, frustration with the USPS aside, ahead of Workhorse’s Q4 results (3/1), other issues remain. The company said Q4 production will be soft due to increased cases of COVID-19, battery supply problems, Shlisky will want to know if production problems have been resolved and if the company is still on track to produce 100 cars a month by the end of the first quarter.The other key issue is growing competition in the production area. Ford, as expected, announced its E-Transit model, but General Motors also announced the launch of a potential competitor to the Workhorse C-650. In addition, Xos Trucks has just announced that it is going public through the merger of SPAC, as well as Ree Auto, which can serve all types of commercial vehicles. classes 1-7 and is scheduled to contribute $ 436 million for its own SPAC merger transaction. “In combination with the mixed readings we received at best,” Schlisky said, “we believe that now is not the time to venture into the long side for WKHS. retention) without offering a price target. (To watch Shliski’s record, click here) Shliski’s colleagues, however, have a price forecast and after the massive drop on Tuesday, the average street price of $ 22 may bring a profit of ~ 47% next year. The analyst consensus evaluates the shares of a moderate purchase, based on 3 purchases and retentions, each. (See WKHS analysis of TipRanks shares.) To find good ideas for EV stocks trading at attractive ratings, visit TipRanks Best Buy Shares, a newly created tool that brings together all insights into TipRanks ownership. Disclaimer: The views expressed in this article are those of the analyst only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.


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