Workhorse Has The Edge Among EV Delivery Trucks, Oppenheimer Says

Priya Nigam
2 min read
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While Workhorse Group Inc (NASDAQ: WKHS) has strong long-term growth prospects, there are multiple catalysts that lend near-term upside to its stock, according to Oppenheimer.

The Workhorse Analyst: Colin Rusch initiated coverage of Workhorse with an Outperform rating and a price target of $23.

The Workhorse Thesis: The company’s electric last-mile delivery truck platform offers the benefit of vehicle design iterations as well as a substantial competitive advantage of supporting a flexible manufacturing model, Rusch said.

He added that Workhorse’s vehicles serve a market estimated at around $18 billion and has consumers who are unwilling to compromise on service.

The analyst believes the company is in a strong position to win the U.S. Postal Service contract for upgrading its delivery fleet of 165,000 vehicles, valued at $6.3 billion.

“Workhorse’s HorseFly drone is the only Unmanned Aerial Systems (UAS) that can be launched remotely from a last-mile delivery vehicle,” Rusch wrote in the note, adding that this advantage is protected by patents and can potentially lower last-mile delivery costs.

Workhorse inked an intellectual property licensing agreement with EV startup Lordstown Motors. As Workhorse scales manufacturing, it could leverage Lordstown’s capacity to reduce capital needs, he noted.

WKHS Price Action: Shares of Workhorse had declined by 5% to $17.85 at the time of publication.

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Latest Ratings for WKHS

Sep 2020

Oppenheimer

Initiates Coverage On

Outperform

Jul 2020

Colliers Securities

Downgrades

Buy

Neutral

Apr 2020

Roth Capital

Initiates Coverage On

Buy

View More Analyst Ratings for WKHS
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