DA Davidson Downgrades XOS Inc. (XOS) to Neutral

DA Davidson analyst Michael Shlisky downgraded XOS Inc. (NASDAQ: XOS) from Buy to Neutral with a price target of $9.00 (from $17.00).

The analyst comments "We are downgrading XOS to NEUTRAL, from Buy, with a price target of $9 (from $17) following 2Q:24 results. XOS continues to grow sales, has turned gross-margin positive, and appears likely to beat 2024 guidance and turn FCF-positive in 2025. That said, we have made it a policy to avoid recommending EV stocks with a "going concern" clause in its 10-Q/K filing. At the time of filing, XOS had debt due in August 2025, technically causing this clause. XOS noted to us that it has a good relationship with its lender and expects to resolve the issue in the coming months. Otherwise, we believe XOS remains one of the most-promising EV start-ups left."

For an analyst ratings summary and ratings history on XOS Inc. click here. For more ratings news on XOS Inc. click here.

Shares of XOS Inc. closed at $5.25 yesterday.

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