Ola Electric shares plunge another 5% to hit all-time low after Citi slashes target price by 51% - The Economic Times
Ola Electric’s stock price fell another 5% after global brokerage firm Citi sharply reduced its target price and downgraded the stock to a “sell” rating. The brokerage reportedly cut its price target by nearly 51%, raising concerns about the company’s growth outlook and financial performance. The downgrade has added pressure on the electric vehicle maker, which has already been facing volatility since its market debut. Analysts highlighted potential challenges related to profitability, rising competition in the EV segment, and execution risks. Following the report, investors reacted swiftly, leading to heavy selling on the exchanges. Market experts believe that sustained pressure on margins and uncertainties around future expansion could continue to impact investor sentiment. Ola Electric shares have seen notable fluctuations in recent sessions, reflecting cautious market confidence amid evolving dynamics in India’s fast-growing electric vehicle sector.
The Key points
- Ola Electric shares declined 5% in latest trading session.
- Citi downgraded the stock rating to “sell.”
- Target price was reduced by 51%.
- Brokerage flagged concerns over profitability outlook.
- Rising competition in EV market noted as risk.
- Execution and expansion challenges highlighted.
- Stock has shown volatility after listing.
- Investor sentiment weakened following downgrade.
- Margin pressure remains a key concern.
- EV sector growth faces increasing competitive pressure.
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