Why Goldman Sachs Is Bullish On Lordstown Motors

Lordstown Motors Corp’s (NASDAQ: RIDE) takeover of a fully equipped factory from General Motors (NYSE: GM) gives the company internal manufacturing capabilities and lighter capital expenditure, according to Goldman Sachs.

The Lordstown Motors Analyst: Mark Delaney initiated coverage of Lordstown Motors with a Buy rating and $31 price target.

The Lordstown Motors Thesis: The company is a startup battery electric vehicle original equipment manufacturer focused on the commercial light vehicle market, Delaney said in a Friday initiation note.

“Management expects to begin sales in September 2021 with its Endurance pickup truck, and this would likely make it the first company with a full-sized EV pickup truck targeting fleet customers in the market,” the analyst said. 

Industry checks with potential fleet customers and around 50,000 pre-orders for Lordstown's Endurance “suggest to us that there is good demand for the product,” he said. 

“We believe that Lordstown’s first-mover advantage, unique design/technology, and features that should be well-received by the customer base will help the company to be successful.”

RIDE Price Action: Shares of Lordstown Motors were up 10.36% at $20.05 at last check Friday. 

Courtesy photo.