Worksport price target lowered at Alliance Global Partners following stock split

Alliance Global Partners analyst C. K. Poe Fratt lowered the firm’s price target on Worksport (WKSP) to $12.50 from $17.50 and keeps a Buy rating on the shares following the 1 for 10 reverse stock split. The firm was optimistic that compliance with the Nasdaq listing requirements would be eventually regained, but the steep drop in the stock price of 28% in February into the 70c/share pre-split range and the selling pressure following the dilutive warrant inducement transaction made regaining compliance unlikely prior to the mid-April deadline, and as a result, the board approved the reverse stock split, the analyst tells investors in a research note. The firm says that the reverse stock split below expectations of a reverse stock split in the 1 for 15 to 1 for 30 range, and notes that the board approved and implemented the reverse stock split without seeking shareholder approval.