Roth Capital downgrades Workhorse after ‘laundry list’ guidance cut

Roth Capital analyst Craig Irwin downgraded Workhorse Group (WKHS) to Neutral from Buy with a price target of $3.50, down from $7. The company posted weak Q2 results and management cut guidance “with a laundry list of reasons for the weaker outlook,” Irwin tells investors in a research note. The analyst downgrades Workhorse to reflect its “deteriorating outlook” and prefers shares of GreenPower Motor (GP). As an upstream chassis supplier to Workhorse, GreenPower should book revenue around two to three months before Workhorse produces the final W750 product, notes Irwin. The analyst says that while Workhorse’s balance sheet “has room for execution,” he expects “substantial dilution by year-end to avoid a going concern qualification.”