Supplier news timing ‘couldn’t be worse’ for Lightning eMotors, says Northland

After Lightning eMotors (ZEV) announced that its battery supplier Romeo Power Systems, a subsidiary of Nikola (NKLA), reneged on its contractual obligations and hurt Lightning’s Q4 revenue, Northland analyst Abhishek Sinha said the timing "couldn’t be any worse" for Lightning and that the Street could be less forgiving given this is the latest in a series of negative news in the last few months. However, he believes this to be a one off event, expects the revenue loss to be recovered in 2023, and views the stock as having "already been overly punished." Sinha has an Outperform rating and $2.50 price target on Lightning eMotors shares.