Nikola Trades Higher After JPMorgan Upgrade: 'A Story-Stock, But..."

Nikola Corporation NKLA shares are trading higher after JPMorgan upgraded the company's stock from Neutral to Overweight and announced a $45 price target.

"In our view, Nikola is currently a story-stock, but we are on board as long as the company executes to plan, and providing the stock offers a favorable risk-reward trade-off," analyst Paul Coster wrote in a note.

See Also: Nikola CEO Mark Russell On Hydrogen Truck Vision: 'This Is About Saving The Planet'

The firm attributes the upgrade to three long-term potential positive catalysts:

• The announcement of an OEM partner for the Badger truck
• An H2 station deployment plan for the UK
• Potentially accelerated implementation plans for the FCEL truck in the U.S. California’s CARB ACT ruling could lead to accelerated adoption of H2 infrastructure on the West Coast, beyond Nikola’s original plan

Nikola operates as an integrated zero-emissions transportation systems provider. It designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure.

Nikola's stock was trading up 12.7% at $45.35 per share at the time of publication. The company has a 52-week high of $93.99 and a 52-week low of $10.27.