In a report released today, Carter Driscoll from B.Riley FBR reiterated a Buy rating on Workhorse Group (NASDAQ: WKHS), with a price target of $4. The company’s shares opened today at $1.50, close to its 52-week low of $1.48.
Driscoll observed:
“Short-term financing solution—but more is needed. Workhorse (WKHS) announced a financing that was necessary to solve near-term funding needs. The company had to refinance a $6.1M bullet payment and did so with a term loan that has some moving parts. The transaction buys time for the company to pursue a more meaningful capital raise to fund its substantial growth opportunities. WKHS still needs additional capital to jumpstart production of its N-GEN last mile delivery vehicles and W15 electric pickup truck. With approximately 1-2 months lead time needed to secure materials for a ramp in production plus the time needed to secure capital, we believe 3Q18 revenues will be similar to 1Q18. We have therefore pushed out the ramp by one quarter, which flows through our FY18/FY19 forecast.”
According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -6.3% and a 34.9% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Canadian Solar Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Workhorse Group with a $4 average price target.
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The company has a one-year high of $3.82 and a one-year low of $1.48. Currently, Workhorse Group has an average volume of 235.1K.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WKHS in relation to earlier this year.
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Workhorse Group, Inc. engages in the designing, developing, manufacturing, and selling of trucks with powertrain components under the workhorse proven chassis brand. It focuses on providing solutions to the commercial transportation sector. The company was founded by Stephen Burns on February 20, 2007 and is headquartered in Loveland, OH.
