Shares of Ola Electric Mobility dropped over 7 percent to a six-month low at Rs 29.53 on the NSE on Friday, October 23, after global investment bank Goldman Sachs downgraded its stock recommendation to ‘Sell’ from ‘Neutral’ earlier and cut its target price to Rs 23 per share from Rs 39.28. This implies a downside of 24 percent from current levels.
At the time of writing the report at around 1.15 pm, the shares of pure-play electric vehicle major traded 7.45 percent lower at Rs 29.56 on the NSE.
The stock has declined almost 15.42 percent in the past one week while it has fallen 28.06 percent over the last one month. On year-to-date basis, the Ola Electric shares have fallen 19.60 percent.
Ola Electric share price target: Why Goldman Sachs has cut target and gave ‘Sell’
Goldman Sachs cut Ola Electric’s gave ‘Sell’ call and cut the share price target to Rs 23, citing a more challenging path to free cash flow, elevated interest costs, significant capital expenditure requirements and a prolonged period of operating losses.