Electric Last Mile Solutions Inc (ELMSQ)

[value1008]

I've been wanting to see what exactly Jefferies analyst Stephen Volkmann said about ELMS to justify slashing his PT from $18 all the way down to a measly $2.50 in his note released yesterday early a.m. It's very hard to find anything on the internet. So i got the free 1-week trial with StreetInsider.com and this is what is shown under their headline item:

UPDATE: Jefferies Downgrades Electric Last Mile Solutions Inc. (ELMS) to Hold

February 3, 2022 Updated-7:55 AM EST

Jefferies analyst Stephen Volkmann downgraded Electric Last Mile Solutions Inc. (NASDAQ: ELMS) from Buy to Hold with a price target of $2.50 (from $18.00).

The analyst commented, "ELMS recently announced the resignation of its Chairman and CEO following an internal investigation. ELMS is also restating its financials for FY 20/21. The resulting impact on the stock raises the potential for significantly increased costs and cash burn, and the lack of meaningful business updates from the company provides little to reassure markets. We downgrade ELMS to a HOLD and reduce our price target to $2.50."
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Presumably his remark about "increased costs" refers to the prospect of having to raise funds down the road at lower stock prices, and/or bankers not willing to give them lower borrowing terms if they try to finance any debt if/when cash runs low....