H.C. Wainwright analyst Amit Dayal has maintained their neutral stance on REE stock, giving a Hold rating today.
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Amit Dayal has given his Hold rating due to a combination of factors affecting REE Automotive. The company’s decision to pause the production plans for its P7 offering is a significant factor, as this move is intended to conserve cash in light of recent tariff-related challenges. These tariffs have disrupted the company’s original market entry plans, prompting management to prioritize cost-cutting and cash preservation measures.
Amit Dayal also notes that the company is shifting its focus towards commercializing its software offerings and the software-defined vehicle platform, while aiming to reduce quarterly operating costs. Despite having $61 million in cash, the company faces several risks, including market adoption and regulatory challenges. Potential catalysts for the stock include successful customer acquisitions for the SDV platform and clarity on tariff issues, which could allow the company to resume its P7 commercialization efforts.
In another report released today, Roth MKM also downgraded the stock to a Hold with a $1.00 price target.