- NASDAQ: WKHS is set to resume its rises on Friday after consolidating its gains on Thursday.
- Workhorse Group Inc's share prices have considerable upside potential according to a recent analyst note.
- The ongoing increase in US coronavirus statistics may increase the demand for delivery vans the firm produces.
Stock trading is never a one-way street – Workhorse Group Inc (NASDAQ: WKHS) has consolidated its gains by shedding some 0.22% on Thursday after jumping by over 6% on Wednesday. For investors holding the stock, the minor losses after a substantial surge serve as a bullish signal – a minimal consolidation before another potential surge.
Such a resumption of gains may occur as early as Friday. WKHS shares are changing hands at an increase of some 3% in premarket trading. The downside correction – necessary for profit-taking to prevent an entry into overbought conditions – has been shallow, showing fresh demand for Workhorse Group's stock.
Workhorse Group news
The most recent boost for the Loveland, Ohio-based company came from an upbeat buy recommendation by Jaime Perez of R.F. Lafferty. He initiated coverage with a price target of $29, a substantial climb from the current pricing around the $23 handle.
Perez noted that Workhorse has an edge in the market for electric commercial vehicles. As mentioned previously, the carmaker combines two trends – the move to electric automobiles, and the growing demand for deliveries.
Both trends have received a boost in the past 24 hours. President-elect Joe Biden was confirmed the winner in Georgia, dismissing doubts about his entry to the White House. The former Vice-President is a proponent of environmental-friendly policies.
The other trend received a push from depressing coronavirus developments. The US hit a new daily peak of COVID-19 cases above 180,000, while hospitalizations also hit an all-time high of over 80,000. Moreover, the Center for Disease Control and Prevention (CDC) called Americans not to travel for Thanksgiving. Staying at home means more home deliveries, at least for the time being.
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