Nikola Inks LOI With TTS To Supply 100 Trucks

Nikola (NKLA) has signed a Letter of Intent (LOI) with Total Transportation Services Inc (TTSI). The two are joining forces to accelerate the use of zero-emission trucks at the port Read More... The post Nikola Inks LOI With TTS To Supply 100 Trucks appeared first on TipRanks Financial Blog.

Nikola Inks LOI With TTS To Supply 100 Trucks

Nikola () has signed a Letter of Intent (LOI) with Total Transportation Services Inc (TTSI). The two are joining forces to accelerate the use of zero-emission trucks at the port of Los Angeles/Long Beach.

The collaboration will result in the trials of the Nikola Tre BEV as an alternative mode of transportation at the port. TTSI could end up acquiring 100 Nikola Class 8 battery-electric vehicles (BEV). The port trucking company has also shown intent in acquiring fuel cell electric vehicle (FCEV) semi-trucks.

While the letter of intent is for 100 zero-emission trucks, TTSI will begin with a four-truck pilot early next year.

Nikola’s Global Head of BEV business unit, Michael Erickson said, “TTSI’s decision to utilize both Nikola BEV and FCEV vehicles speaks to their forward-looking and strategic mindset in covering a variety of hauling distances and loads, while still contributing to California’s clean-air initiatives.”

“Our trucks operate for 18-20 hours a day making the benefits of the Nikola portfolio a perfect match for our needs. The expected availability of the BEV aligns with our desire to reach our sustainability goals quickly and the FCEV is ideal for longer-range applications,” said Vic LaRosa, TTSI’s president.

The LOI is a big deal for Nikola as it seeks to position the Nikola Tre FCEV truck to address the North American trucking market. The zero-emission trucks also bode well with California’s clean air initiative. ().

According to Deutsche Bank analyst , Nikola offers an ideal way of investing in zero-emission commercial trucks, with adoption poised to take off.

“In particular, its fuel-cell solution which bundles electric truck, hydrogen fuel, and full service and maintenance in one contract priced at lower cost of ownership than traditional trucks, could be attractive to fleet operators, and generate solid revenue for Nikola and attractive returns throughout the life of the vehicles,” said Mr. Rosner.

The analyst has reiterated a Hold rating on the stock with a $19 price target implying 87.38% upside potential to current levels.

Consensus among analysts on Wall Street is a Hold based on 1 Buy and 5 Hold ratings. The average analyst implies 99.21% upside potential to current levels.

Despite the bullish price targets, NKLA scores a 1 out of 10 on TipRanks’ rating system, suggesting it is likely to underperform the overall market.

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Qorvo Snaps up NextInput; Street Says Buy

Wireless and wired products and services provider Qorvo Inc. (QRVO) has acquired NextInput. The latter provides force-sensing solutions for human-machine interface (HMI) in diverse markets such as mobile, true wireless Read More... The post Qorvo Snaps up NextInput; Street Says Buy appeared first on TipRanks Financial Blog.

Qorvo Snaps up NextInput; Street Says Buy

Wireless and wired products and services provider Qorvo Inc. () has acquired NextInput. The latter provides force-sensing solutions for human-machine interface (HMI) in diverse markets such as mobile, true wireless stereo, consumer, automotive, IoT, robotics, medical and industrial.  

The transaction enhances Qorvo’s product portfolio and helps it in speeding up offerings of force-sensing solutions that make use of micro-electromechanical systems (MEMS)- based sensors.

Qorvo Mobile Products President, Eric Creviston said, “The NextInput team is a great addition to our Mobile products business, providing MEMS-based sensors in innovative products for customers in existing and new markets.” (See Qorvo stock analysis on TipRanks)

Creviston added, “NextInput enhances Qorvo’s technology and product leadership while opening new opportunities in next-generation human-machine interface solutions.”

On May 5, Qorvo announced its 4Q results. Revenue increased 35.8% year-on-year to $1.07 billion and came in ahead of consensus estimates by $30 million. Non-GAAP earnings per share were $2.74 and beat analysts’ estimates by $0.31.

Qorvo expects double-digit topline growth and an expansion in operating margin for the year ending March 2022. The company also announced a $2 billion stock buyback program.

For 1Q, Qorvo estimates revenue to be in the range of $1.065 billion to $1.095 billion and earnings per share of $2.45.

On May 6, Barclays analyst Blayne Curtis reiterated a Buy rating on the stock and increased the price target to $210 (13.7% upside potential) from $200.

Commenting on Qorvo’s 4Q results as a “beat and raise” quarter, Curtis noted the guidance as “conservative.”

Consensus on the Street is that Qorvo is a Strong Buy based on 10 Buys, and 3 Holds. The average analyst price target of $215.08 implies 16.5% upside potential. Shares have gained about 86.8% over the past year.

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The post Qorvo Snaps up NextInput; Street Says Buy appeared first on TipRanks Financial Blog.

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