Oppenheimer analyst Colin Rusch downgraded Workhorse Group (WKHS) to Perform from Outperform without a price target after the U.S. Postal Service announced it was awarding Oshkosh Defense (OSK) a contract to manufacture its next generation of postal delivery vehicles. As one of the three finalists and the only U.S.-made battery electric vehicle offering, Rusch expected Workhorse to get at least a portion of the contract. He notes, however, that Workhorse continues to have 8,000 vehicles in backlog representing $600M-plus in revenue along with the potential royalty stream from Lordstown Motors (RIDE). Nonetheless, Rusch says that with Workhorse missing the U.S. Postal Service contract entirely and facing a “choppy supply chain situation” due to COVID-19-related headwinds, he’s stepping to the sidelines. Estimates need to move lower with USPS trucks coming out of estimates and availability of battery packs remaining challenging, says the analyst in a research note. He also believes the company’s convertible debt “could prove cumbersome,” even with its maturity in 2024.