Hyliion Holdings (HYLN) - Get HYLIION HOLDINGS CORP. Report shares tumbled Monday after UBS analysts downgraded the electric vehicle parts maker to sell from neutral and slashed their target price to $5 from $14.
Analyst Steven Fisher in a note to investors that Hyliion is not going to meet revenue expectations for 2022 through 2024, which is a key valuation driver, according to the Fly, noting that hitting company milestones has taken longer than expected.
The analyst said expected a "careful" customer adoption rate going rate and noted that market conditions such as supply chain and labor shortages are now more challenging.
Fisher said he thinks Hyliion shares currently reflect "overly optimistic" expectations for its sales ramp.
Hyliion shares were marked 11.4% lower in early Monday trading to change hands at $6.94 each, extending their year-to-date slump t o around 58%.
Hyliion reported a quarterly loss of 13 cents a share in August, around 6 cents ahead of analysts' forecasts, and named industry veteran Dennis Gallagher as CFO.
The company said at the time it expected to begin generating revenue from its improved Hybrid product after it launched later this year, but it does not expect the revenue generated in 2021 to be material.
Earlier this year, Hyliion Holdings said it would collaborate with a number of major companies to gain insights as it develops its Hypertruck.
What Hyliion called its Hypertruck Innovation Council to Advance Electrification Solutions for the Transport Industry included companies such as Anheuser-Busch (BUD) - Get Anheuser-Busch InBev SA/NV Sponsored ADR Report, Penske Truck Leasing (PAG) - Get Penske Automotive Group, Inc. Report, Ryder System (R) - Get Ryder System, Inc. Report, and the closely held Rochester, N.Y., supermarket chain Wegmans.