Deutsche Bank Starts Lordstown Motors (RIDE) at Hold

Deutsche Bank analyst Emmanuel Rosner initiates coverage on Lordstown Motors (NASDAQ: RIDE) with a Hold rating and a price target of $8.00.

The analyst comments "We initiate coverage of Lordstown Motors with a Hold rating and $8 price target. Lordstown has been aiming to bring the first electric full-size pickup to US market later this year, targeting commercial fleets based on a value proposition around lower total cost of ownership than traditional alternatives, especially when including Federal EV tax credits. While the market opportunity is large and Lordstown’s truck received decent initial interest from potential fleet customers, we see considerable uncertainty ahead. In the near-term, the company has encountered large operational and supply chain challenges and material cost overruns in its aggressive ramp up towards production, and is now in urgent need of capital. Assuming it can get new capital, interest from fleets could get negatively impacted by competition from incumbents new EV entries, including Ford’s new F-150 Lightning with lower price point, more attractive TCO, and superior service network. And even if demand is there, the business may remain unprofitable for longer due to higher costs and capital intensity than initially contemplated. In this context, we initiate coverage with a Hold rating and will monitor closely near-term company updates around financing, demand and production ramp-up."

For an analyst ratings summary and ratings history on Lordstown Motors click here. For more ratings news on Lordstown Motors click here.

Shares of Lordstown Motors closed at $10.55 yesterday.

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