Persistance Is A Bitch
- May 18, 2012
Lordstown Motors plummets again after Morgan Stanley calls it a $2 stock
- Morgan Stanley lowers Lordstown Motors Corp. (NASDAQ:RIDE) to an Underperform rating from Equal-weight after a significant reset of its forecasts and valuation as it factored in last week's update from the electric vehicle maker.
- Analyst Adam Jonas: "While the agreement with Foxconn helps secure the future of the Lordstown plant and buys time to explore other business opportunities for RIDE (new programs,new platforms,new segments thathave yet to be developed), we believe there would likely be little left for shareholders."
- Jonas and team think the downside to the $2 price target on RIDE ouweighs the upside of the bull case valuation of $8.
- Shares of Lordstown Motors are down another 7.69% premarket to follow on yesterday's 10.41% drop. Volatility on RIDE continues to ramp up.