Both covering analyst carry a tepid "hold" rating
Lordstown Motors (NASDAQ: RIDE) results came in better than expected as management indicated that deliveries are on track. Management also indicated that the company will have to raise half of what it originally intended, at $50-75 million for the year. Lordstown stock is currently down 70% from its 52-week high.
The company plans to deliver its first pickup truck in Q4, at which point the revenue should be around $11-12 million. Moving into 2023, the company expects to increase revenue to $100-150 million, which would put the current 2023 price-to-sales at 3.25x.
Should the company perform better than expected during the next couple of quarters, the stock could head up towards $4 a share. Investors will be looking at how deliveries and operations progress in the third quarter.
The equity looks to be heavily shorted, with short interest accounting for nearly 28% of the available float. At the stock's average pace of trading, it would take shorts over six days to buy back their bearish bets. Analysts are still unsure of RIDE, with both in coverage sporting a tepid "hold" recommendation.