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Hyliion Holdings (NYSE:HYLN) lost a bull on Wall Street as Cantor Fitzgerald analyst Andres Sheppard downgraded shares to Neutral after a disappointing earnings result on Wednesday.
“Despite HYLN’s collaboration with Cummins Inc. (CMI), which, according to management, is expected to optimize CMI’s natural gas engine for the Hypertruck ERX, Hyliion continues to experience longer delays and extended lead times in customer truck availability due to persistent supply-chain shortages, which continues to affect the timing of installations and deliveries,” he wrote on Thursday. “We expect these disruptions to remain and have therefore become more conservative on valuation in the short term.”
Sheppard added that a lack of clarity on pricing for the Hypertruck ERX adds uncertainty. As such, he advised clients that the sidelines is the safest place to remain until more visibility on production and delivery dynamics are available.
Alongside a downgrade to Neutral from a prior “Overweight” rating, Sheppard assigned a $5 price target to the stock.
Read the latest earnings call transcript.
