Shares of Workhorse Group Inc. tumbled 15% in morning trading Wednesday, putting them on track to snap a record 9-day winning streak in which they rocketed more than 4-fold (up 321%). Analyst Gregory Lewis at BTIG reiterated his buy rating on the electric van maker’s stock but boosted his price target to $26, which is 77% above current levels, from $10. Lewis said a key takeaway from a call he hosted with management on Tuesday was that the company has “first-mover” advantage, which was solidified when the Series C van received final regulatory safety approvals, giving the company a 1-to-2-year head start on other electric vehicle (EV) last-mile delivery competitors. He said this should allow the company to secure a revolving credit facility, which would allow it to scale up operations. Lewis said a major potential catalyst could be a $6 billion to $8 billion contract from the U.S. Postal Service, in which bids are due later this month, and an announcement of the winner is expected later this year. He said another bullish factor is the optionality around the company’s 10% equity stake in Lordstown Motors Corp., which unveiled its EV Endurance pickup truck last week. The stock has skyrocketed 760% over the past three months. Among its EV rivals, shares of Tesla Inc. have run up 133% the past three months and Nikola Corp. have climbed 542%, while the S&P 500 has gained 26%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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